The Nord Stream 1 pipeline is missing a turbine that's keeping natural-gas flows out of Russia slow, and Russia and Germany are caught in a blame game over it
Huileng Tan
Thu, August 4, 2022
German Chancellor Olaf Scholz viewed the repaired Siemens Energy turbine for Nord Stream 1 on Wednesday and said it's "ready for action at any time."
Huileng Tan
Thu, August 4, 2022
German Chancellor Olaf Scholz viewed the repaired Siemens Energy turbine for Nord Stream 1 on Wednesday and said it's "ready for action at any time."
Andreas Rentz/Getty Images
The Nord Stream 1 pipeline sends gas from Russia to Germany.
Gazprom said it's "impossible" to get a turbine for the pipeline back from repairs due to sanctions.
German Chancellor Olaf Scholz said "there is nothing preventing it from being transported to Russia."
The Nord Stream 1 pipeline is missing a key turbine that's keeping natural-gas flows from Russia to Europe slow, and Russia and Germany are caught in a blame game over the delay.
Gazprom has cut natural-gas flows via the Nord Stream 1 to Germany twice in the past two months. In June, Gazprom cut flows to about 40% of the pipeline's capacity, citing a turbine's hold-up in Canada as a result of war-related sanctions. In July, Gazprom again cut natural-gas flow to Germany, this time to just 20% of capacity, citing a second turbine that needed maintenance.
On July 10, Canada said it would waive sanctions and return the first repaired turbine to Russia to ensure continued gas flows in Europe. But, on July 13, Gazprom said it didn't have the required paperwork to get the equipment out of Canada.
The first turbine, manufactured by Siemens Energy, is now in Germany awaiting transportation to Russia. German Chancellor Olaf viewed the equipment in Germany on Wednesday and said it was "ready for action at any time," Bloomberg reported. "There is nothing preventing it from being transported to Russia," Scholz added.
Christian Bruch, the head of Siemens Energy, said Wednesday the company is discussing the issue with Gazprom and is keen to return the turbine, The New York Times reported.
But Russian state-energy giant Gazprom said Wednesday on Twitter that it's "impossible" to get the turbine back "due to the discrepancy between the current situation and the existing contractual obligations on the part of Siemens."
Also on Wednesday, Kremlin spokesperson Dmitry Peskov said the turbine's return to Russia is contingent upon documentation proving it isn't subject to sanctions, Reuters reported.
Europe depends on Russia for 40% of its natural-gas needs, such as cooking in homes and firing up power stations. It's fretting over a winter energy crisis because Russia has been slowing natural-gas flows to countries in the region as some buyers refused to pay in rubles, and on the back of the turbine drama.
German industry leaders have warned of severe economic hardship should Russian gas be cut completely. To save energy, Europe's largest economy has already started turning off some heating and lights in summer.
The Nord Stream 1 pipeline sends gas from Russia to Germany.
Gazprom said it's "impossible" to get a turbine for the pipeline back from repairs due to sanctions.
German Chancellor Olaf Scholz said "there is nothing preventing it from being transported to Russia."
The Nord Stream 1 pipeline is missing a key turbine that's keeping natural-gas flows from Russia to Europe slow, and Russia and Germany are caught in a blame game over the delay.
Gazprom has cut natural-gas flows via the Nord Stream 1 to Germany twice in the past two months. In June, Gazprom cut flows to about 40% of the pipeline's capacity, citing a turbine's hold-up in Canada as a result of war-related sanctions. In July, Gazprom again cut natural-gas flow to Germany, this time to just 20% of capacity, citing a second turbine that needed maintenance.
On July 10, Canada said it would waive sanctions and return the first repaired turbine to Russia to ensure continued gas flows in Europe. But, on July 13, Gazprom said it didn't have the required paperwork to get the equipment out of Canada.
The first turbine, manufactured by Siemens Energy, is now in Germany awaiting transportation to Russia. German Chancellor Olaf viewed the equipment in Germany on Wednesday and said it was "ready for action at any time," Bloomberg reported. "There is nothing preventing it from being transported to Russia," Scholz added.
Christian Bruch, the head of Siemens Energy, said Wednesday the company is discussing the issue with Gazprom and is keen to return the turbine, The New York Times reported.
But Russian state-energy giant Gazprom said Wednesday on Twitter that it's "impossible" to get the turbine back "due to the discrepancy between the current situation and the existing contractual obligations on the part of Siemens."
Also on Wednesday, Kremlin spokesperson Dmitry Peskov said the turbine's return to Russia is contingent upon documentation proving it isn't subject to sanctions, Reuters reported.
Europe depends on Russia for 40% of its natural-gas needs, such as cooking in homes and firing up power stations. It's fretting over a winter energy crisis because Russia has been slowing natural-gas flows to countries in the region as some buyers refused to pay in rubles, and on the back of the turbine drama.
German industry leaders have warned of severe economic hardship should Russian gas be cut completely. To save energy, Europe's largest economy has already started turning off some heating and lights in summer.
Scholz opens door to extend nuclear as Russia squeezes gas supply
Yann SCHREIBER with Sebastien ASH in Frankfurt
Wed, August 3, 2022
German Chancellor Olaf Scholz on Wednesday raised the possibility of keeping nuclear plants going as he accused Russia of blocking the delivery of a key turbine to throttle gas supplies to Europe.
The continent's biggest economy has been scrambling for energy sources to fill a gap left by a reduction in gas supplies from Moscow.
Standing next to the turbine, Scholz said that extending the lifetime of Germany's three remaining nuclear power plants "can make sense".
The power stations, which are set to be taken off the grid at the end of the year, were "relevant exclusively for electricity production, and only for a small part of it", Scholz said.
In total, the nuclear fleet accounts for six percent of Germany's electricity output.
The government has said it will await the outcome of a new "stress test" of the national electric grid before determining whether to stick with the long-planned phase-out.
- Nuclear switch -
Former chancellor Angela Merkel spectacularly decided to ditch atomic energy in 2011 following the Fukushima nuclear disaster in Japan.
Extending the lifetime of the plants has set off a heated debate in Germany, where nuclear power has been a source of controversy stretching back before Merkel's decision.
Germany has already moved to restart mothballed coal power plants to guard against an energy shortfall.
The squeeze comes as Russia dwindles supplies of gas, which Germany has long relied on to power industry and heat homes.
Russian energy giant Gazprom has chalked up limited supplies to technical issues.
The delayed return of a turbine from Canada, where the unit was being serviced, was behind the initial reduction in deliveries via the Nord Stream 1 gas pipeline in June, according to Gazprom.
Supplies via the energy link were further reduced to around 20 percent of capacity in late July, after Gazprom halted the operation of one of the last two operating turbines due to the "technical condition of the engine".
- Turbine trouble -
Berlin has dismissed Gazprom's justifications for the reduction to supply, seeing instead a "political" move in response to the West's support for Ukraine.
The turbine which was transferred from Canada to Germany was "available and working", Scholz said Wednesday.
"There is no reason why this delivery cannot happen," he said, adding that it had received "all the approvals" needed for export from Germany to Russia.
Pipeline operators only had to say "they want to have the turbine and provide the necessary customs information for transport to Russia", Scholz said.
Gazprom however insisted it was unable to take delivery of the turbine.
"Sanctions regimes in Canada, in the European Union and in Britain, as well as the inconsistencies in the current situation concerning the contractual obligations of (turbine maker) Siemens make the delivery impossible," it said.
Kremlin spokesman Dmitry Peskov also said Gazprom was still waiting for documents confirming the unit was "not affected by sanctions".
It was however "technologically possible" in the opinion of Russian President Vladimir Putin to continue deliveries via the Nord Stream 2 pipeline, Peskov said.
The second pipeline, which runs parallel to Nord Stream 1, stands completed but was blocked by the German government in the run-up to the invasion of Ukraine.
Former chancellor Gerhard Schroeder, who signed off on the pipeline while in office, told German magazine Stern it was "the easiest solution" to use Nord Stream 2 instead.
But Scholz has rejected the call, saying Nord Stream 1 provided sufficient capacity for gas flows.
Moscow's move to limit supplies sent a "difficult message" to the world by creating doubt over Russia's commitment to its agreements, he added.
bur-sea-fec/imm
Yann SCHREIBER with Sebastien ASH in Frankfurt
Wed, August 3, 2022
German Chancellor Olaf Scholz on Wednesday raised the possibility of keeping nuclear plants going as he accused Russia of blocking the delivery of a key turbine to throttle gas supplies to Europe.
The continent's biggest economy has been scrambling for energy sources to fill a gap left by a reduction in gas supplies from Moscow.
Standing next to the turbine, Scholz said that extending the lifetime of Germany's three remaining nuclear power plants "can make sense".
The power stations, which are set to be taken off the grid at the end of the year, were "relevant exclusively for electricity production, and only for a small part of it", Scholz said.
In total, the nuclear fleet accounts for six percent of Germany's electricity output.
The government has said it will await the outcome of a new "stress test" of the national electric grid before determining whether to stick with the long-planned phase-out.
- Nuclear switch -
Former chancellor Angela Merkel spectacularly decided to ditch atomic energy in 2011 following the Fukushima nuclear disaster in Japan.
Extending the lifetime of the plants has set off a heated debate in Germany, where nuclear power has been a source of controversy stretching back before Merkel's decision.
Germany has already moved to restart mothballed coal power plants to guard against an energy shortfall.
The squeeze comes as Russia dwindles supplies of gas, which Germany has long relied on to power industry and heat homes.
Russian energy giant Gazprom has chalked up limited supplies to technical issues.
The delayed return of a turbine from Canada, where the unit was being serviced, was behind the initial reduction in deliveries via the Nord Stream 1 gas pipeline in June, according to Gazprom.
Supplies via the energy link were further reduced to around 20 percent of capacity in late July, after Gazprom halted the operation of one of the last two operating turbines due to the "technical condition of the engine".
- Turbine trouble -
Berlin has dismissed Gazprom's justifications for the reduction to supply, seeing instead a "political" move in response to the West's support for Ukraine.
The turbine which was transferred from Canada to Germany was "available and working", Scholz said Wednesday.
"There is no reason why this delivery cannot happen," he said, adding that it had received "all the approvals" needed for export from Germany to Russia.
Pipeline operators only had to say "they want to have the turbine and provide the necessary customs information for transport to Russia", Scholz said.
Gazprom however insisted it was unable to take delivery of the turbine.
"Sanctions regimes in Canada, in the European Union and in Britain, as well as the inconsistencies in the current situation concerning the contractual obligations of (turbine maker) Siemens make the delivery impossible," it said.
Kremlin spokesman Dmitry Peskov also said Gazprom was still waiting for documents confirming the unit was "not affected by sanctions".
It was however "technologically possible" in the opinion of Russian President Vladimir Putin to continue deliveries via the Nord Stream 2 pipeline, Peskov said.
The second pipeline, which runs parallel to Nord Stream 1, stands completed but was blocked by the German government in the run-up to the invasion of Ukraine.
Former chancellor Gerhard Schroeder, who signed off on the pipeline while in office, told German magazine Stern it was "the easiest solution" to use Nord Stream 2 instead.
But Scholz has rejected the call, saying Nord Stream 1 provided sufficient capacity for gas flows.
Moscow's move to limit supplies sent a "difficult message" to the world by creating doubt over Russia's commitment to its agreements, he added.
bur-sea-fec/imm
Wed, August 3, 2022
MONTREAL — The foreign ministers of Canada and Germany say Canada's decision to send parts of a Russian natural gas pipeline back to Europe has revealed President Vladimir Putin's dishonesty.
The ministers met in Montreal today amid a dispute involving the Nord Stream 1 natural gas pipeline, which runs under the Baltic Sea from Russia to Germany.
Canada Foreign Affairs Minister Mélanie Joly says the return of the turbine to Europe "calls Putin's bluff" as he wages war in Ukraine.
The Liberal government drew criticism for granting Siemens Energy an exemption on sanctions against Russia and allowing the turbine — which had been in Montreal for repairs — to return to Germany and then eventually to Russia for installation in the pipeline.
Since the decision to ship back the turbine, Russia reduced natural gas supplies through the Nord Stream 1 pipeline to Germany to 20 per cent.
Joly and German Foreign Minister Annalena Baerbock told reporters that with the turbine back in Europe, Putin has no excuse not to allow the part to be reinstalled.
Joly and Baerbock say the fact that Putin has reduced gas supplies through the pipeline, even though the turbine was returned, shows he is using energy as a weapon of war.
German Chancellor Olaf Scholz inspected the turbine today in Germany and said “there are no problems” blocking the part’s return to Russia, apart from missing information from Russia’s state-controlled gas company, Gazprom.
Gazprom last week blamed the cut in gas supplies to Germany on delays to the turbine’s delivery due to Western sanctions. The company specifically wants documents from Siemens Energy proving that the turbine isn’t subject to Western sanctions, Kremlin spokesman Dmitry Peskov said.
This report by The Canadian Press was first published Aug. 3, 2022.
— With files from The Associated Press.
Joly, German counterpart defend decision to return turbines covered under Russian sanctions
Wed, August 3, 2022
Foreign Affairs Minister Mélanie Joly and her German counterpart, Annalena Baerbock, tour the Port of Montreal on Wednesday. (Paul Chiasson/The Canadian Press - image credit)
Canada and Germany's foreign ministers are insisting Canada's controversial decision to send turbines used in a Russian natural gas pipeline back to Germany was necessary while refuting Russian claims that the sanctions are stopping their transfer.
Canada's Foreign Affairs Minister Mélanie Joly met with German Foreign Minister Annalena Baerbock in Montreal on Wednesday to discuss Russia's invasion of Ukraine and the war's implications on energy and food prices.
In July, Canada said it would grant a Canadian company an exemption on Russian sanctions and allow the export to Germany of six turbines under maintenance in Montreal that are part of the Nord Stream 1 pipeline, which runs from Russia to Germany.
But since then, Russia has reduced natural gas supplies through the Nord Stream 1 pipeline to Germany citing technical issues that Germany says are an excuse for a political power play.
Gazprom, the Russian state-owned company that operates the pipeline, has claimed maintenance on one turbine that has already been returned was not in line with the contract with Siemens Energy.
During a media conference with Joly on Wednesday, Baerbock criticized Russian President Vladimir Putin for using energy as a "game" to create disunity between Canada, Germany and other allies.
"Our strongest weapon is unity within this alliance," Baerbock said. "There is no chance, not even a single inch that Putin is successful in splitting us."
Justin Tang/The Canadian Press
That decision to grant a sanction exemption on the turbines angered Ukrainian President Volodymyr Zelenskyy, who called Canada's actions unacceptable.
Joly reiterated her government's position that the decision to grant the exemption was a "difficult" one, but echoed her German counterpart's criticism of Russia and Putin.
"It is now clear that Putin is weaponizing energy flows to European. The world sees through his game," Joly said.
German chancellor inspects turbine
German Chancellor Olaf Scholz inspected the turbine Wednesday in Germany and said "there are no problems" blocking the part's return to Russia, apart from missing information from Russia's state-controlled gas company, Gazprom.
Gazprom last week said the cut in gas supplies to Germany was because the turbine's delivery has been delayed due to Western sanctions, a claim it repeated Wednesday. The company specifically wants documents from Siemens proving that the turbine isn't subject to Western sanctions, Kremlin spokesman Dmitry Peskov said.
But in an interview with CBC's Power & Politics airing Wednesday, Joly said she doesn't buy Gazprom's claims.
"We haven't trusted Russia since the invasion, this won't change," she told host Catherine Cullen.
During the press conference, Joly also denied she or her staff had any "specific" information about a direct threat to Ukrainian staff members at Canada's embassy in Kyiv.
Joly was asked whether the government abandoned Ukrainian staff members in Kyiv. The Globe and Mail reported that before the Russian invasion, Global Affairs Canada had information that Moscow had compiled so-called "hit" lists of Ukrainian nationals to be detained or even killed during the occupation. Embassy leaders in Kyiv were told to withhold this information from local staff, according to the Globe.
"Never did I or the department have any information [about] targeting locally engaged staff," Joly said in response, adding that Ukrainian staff in Kyiv were offered the option to come to Canada.
Later on Power & Politics, Joly was specifically asked if there was a specific threat toward the local embassy staff or if she was only unaware of a threat.
"We were not aware of any specific threat," Joly responded. "We've done everything that was required, as in such circumstances, to protect our locally engaged staff."
Joly added that on the day of the invasion, she was "on the phone with our top Canadian diplomat in Ukraine, Larissa Galarza, the ambassador, to make sure that the staff was well treated and at the same time that they would have access to pathways to come to Canada."
Wed, August 3, 2022
Foreign Affairs Minister Mélanie Joly and her German counterpart, Annalena Baerbock, tour the Port of Montreal on Wednesday. (Paul Chiasson/The Canadian Press - image credit)
Canada and Germany's foreign ministers are insisting Canada's controversial decision to send turbines used in a Russian natural gas pipeline back to Germany was necessary while refuting Russian claims that the sanctions are stopping their transfer.
Canada's Foreign Affairs Minister Mélanie Joly met with German Foreign Minister Annalena Baerbock in Montreal on Wednesday to discuss Russia's invasion of Ukraine and the war's implications on energy and food prices.
In July, Canada said it would grant a Canadian company an exemption on Russian sanctions and allow the export to Germany of six turbines under maintenance in Montreal that are part of the Nord Stream 1 pipeline, which runs from Russia to Germany.
But since then, Russia has reduced natural gas supplies through the Nord Stream 1 pipeline to Germany citing technical issues that Germany says are an excuse for a political power play.
Gazprom, the Russian state-owned company that operates the pipeline, has claimed maintenance on one turbine that has already been returned was not in line with the contract with Siemens Energy.
During a media conference with Joly on Wednesday, Baerbock criticized Russian President Vladimir Putin for using energy as a "game" to create disunity between Canada, Germany and other allies.
"Our strongest weapon is unity within this alliance," Baerbock said. "There is no chance, not even a single inch that Putin is successful in splitting us."
Justin Tang/The Canadian Press
That decision to grant a sanction exemption on the turbines angered Ukrainian President Volodymyr Zelenskyy, who called Canada's actions unacceptable.
Joly reiterated her government's position that the decision to grant the exemption was a "difficult" one, but echoed her German counterpart's criticism of Russia and Putin.
"It is now clear that Putin is weaponizing energy flows to European. The world sees through his game," Joly said.
German chancellor inspects turbine
German Chancellor Olaf Scholz inspected the turbine Wednesday in Germany and said "there are no problems" blocking the part's return to Russia, apart from missing information from Russia's state-controlled gas company, Gazprom.
Gazprom last week said the cut in gas supplies to Germany was because the turbine's delivery has been delayed due to Western sanctions, a claim it repeated Wednesday. The company specifically wants documents from Siemens proving that the turbine isn't subject to Western sanctions, Kremlin spokesman Dmitry Peskov said.
But in an interview with CBC's Power & Politics airing Wednesday, Joly said she doesn't buy Gazprom's claims.
"We haven't trusted Russia since the invasion, this won't change," she told host Catherine Cullen.
During the press conference, Joly also denied she or her staff had any "specific" information about a direct threat to Ukrainian staff members at Canada's embassy in Kyiv.
Joly was asked whether the government abandoned Ukrainian staff members in Kyiv. The Globe and Mail reported that before the Russian invasion, Global Affairs Canada had information that Moscow had compiled so-called "hit" lists of Ukrainian nationals to be detained or even killed during the occupation. Embassy leaders in Kyiv were told to withhold this information from local staff, according to the Globe.
"Never did I or the department have any information [about] targeting locally engaged staff," Joly said in response, adding that Ukrainian staff in Kyiv were offered the option to come to Canada.
Later on Power & Politics, Joly was specifically asked if there was a specific threat toward the local embassy staff or if she was only unaware of a threat.
"We were not aware of any specific threat," Joly responded. "We've done everything that was required, as in such circumstances, to protect our locally engaged staff."
Joly added that on the day of the invasion, she was "on the phone with our top Canadian diplomat in Ukraine, Larissa Galarza, the ambassador, to make sure that the staff was well treated and at the same time that they would have access to pathways to come to Canada."
Germany's Scholz says Russia has no reason to hold up turbine return
Wed, August 3, 2022
By Christoph Steitz
MUELHEIM AN DER RUHR, Germany (Reuters) -German Chancellor Olaf Scholz on Wednesday said Russia had no reason to hold up the return of a gas turbine for the Nord Stream 1 pipeline that had been serviced in Canada but has since been stranded in Germany in an escalating energy standoff.
Standing next to the turbine on a factory visit to Siemens Energy in Muelheim an der Ruhr, Scholz said it was fully operational and could be shipped back to Russia at any time - provided Moscow was willing to take it back.
The fate of the 12 metre (13 yard) long turbine has been closely watched as European governments accused Russia of throttling gas supplies on spurious pretexts in revenge for Western sanctions after the invasion of Ukraine in February.
Moscow denies doing so and cited issues with the turbine as the reason for lower gas flows through Nord Stream 1, which have been cut to 20% of capacity.
Kremlin spokesman Dmitry Peskov pushed back against Scholz's remarks on Wednesday, blaming a lack of documentation for holding up the turbine's return to Russia.
He also dangled the prospect of Europe receiving gas through the Nord Stream 2 pipeline, a Moscow-led project that was blocked by the West as Russia sent troops into Ukraine.
The turbine's movements had been shrouded in secrecy and its whereabouts unknown until Tuesday evening when the chancellor's visit to Siemens Energy was announced.
"The turbine works," Scholz said, telling reporters that the point of his visit was to show the world that the turbine worked and "there was nothing mystical to observe here".
"It's quite clear and simple: the turbine is there and can be delivered, but someone needs to say 'I want to have it'".
For Canadian Foreign Minister Melanie Joly, whose government has faced criticism for returning the turbine in violation of its own sanctions, the present impasse was worth it as an illustration of the Kremlin's purpose.
"We called his bluff," she said at a meeting with her German counterpart Annalena Baerbock in Montreal. "It is now clear that Putin is weaponising energy flows through Europe."
Even if Russia took back the turbine, Scholz warned that Germany could face more disruptions further down the line and that supply contracts might not be honoured.
He also said it "can make sense" for Germany to keep its three remaining nuclear power plants running beyond a planned shutdown at the end of 2022, a policy u-turn that has gained support given the risk of a total Russian gas cut-off in winter.
STANDING TOGETHER
A senior manager at Kremlin-controlled Gazprom has said the delivery of the turbine after servicing was not in line with the contract and that it had been sent to Germany without Russia's consent.
Standing next to Scholz, Siemens Energy CEO Christian Bruch confirmed that there were ongoing talks with Gazprom, "but no agreement".
Collapsing gas supplies and rocketing prices have sparked recession warnings for the German economy, Europe's largest, and raised fears of energy shortages and rationing going into winter.
After being forced to bail out the utility Uniper when it became an early casualty of the gas crisis, Scholz's government will have to amend newly introduced energy reforms, sources told Reuters on Wednesday. [L8N2ZF314]
Scholz has called for Germans to steel themselves for rising bills and his government has urged them to make energy savings wherever possible, such as taking shorter showers.
"This is now a moment where we have to stand together as a country. But it is also a moment where we can show what we are capable of," he said.
But he chose not to address questions about his Social Democrat predecessor, former Chancellor Gerhard Schroeder, who has become increasingly derided in Germany for his pro-Russian views and friendship with President Vladimir Putin.
Schroeder said Russia was ready for a negotiated settlement to end the war in an interview published on Wednesday, after travelling to Russia to meet Putin last week.
Putin told Schroeder that Nord Stream 2 could provide 27 billion cubic metres of gas to Europe by the end of the year if allowed to operate, Peskov said.
"Putin explained everything in detail, and the former chancellor asked if it was possible to use Nord Stream 2 in a critical situation," Peskov said. "Putin was not the initiator, Putin did not offer to turn it on, but Putin said that it is technologically possible, and this complex mechanism is ready for instant use."
Scholz signalled that Nord Stream 2 would not be used as an alternative. "We have terminated the approval process, for good reason," Scholz said. "There is sufficient capacity at Nord Stream 1, there is no lack."
(Reporting by Christoph Steitz in Muehlheim, Allison Lampert in Montreal and Ismail Shakil in Ottawa, writing by Kirsti Knolle and Matthias WilliamsEditing by Madeline Chambers, Elaine Hardcastle and David Evans)
Wed, August 3, 2022
By Christoph Steitz
MUELHEIM AN DER RUHR, Germany (Reuters) -German Chancellor Olaf Scholz on Wednesday said Russia had no reason to hold up the return of a gas turbine for the Nord Stream 1 pipeline that had been serviced in Canada but has since been stranded in Germany in an escalating energy standoff.
Standing next to the turbine on a factory visit to Siemens Energy in Muelheim an der Ruhr, Scholz said it was fully operational and could be shipped back to Russia at any time - provided Moscow was willing to take it back.
The fate of the 12 metre (13 yard) long turbine has been closely watched as European governments accused Russia of throttling gas supplies on spurious pretexts in revenge for Western sanctions after the invasion of Ukraine in February.
Moscow denies doing so and cited issues with the turbine as the reason for lower gas flows through Nord Stream 1, which have been cut to 20% of capacity.
Kremlin spokesman Dmitry Peskov pushed back against Scholz's remarks on Wednesday, blaming a lack of documentation for holding up the turbine's return to Russia.
He also dangled the prospect of Europe receiving gas through the Nord Stream 2 pipeline, a Moscow-led project that was blocked by the West as Russia sent troops into Ukraine.
The turbine's movements had been shrouded in secrecy and its whereabouts unknown until Tuesday evening when the chancellor's visit to Siemens Energy was announced.
"The turbine works," Scholz said, telling reporters that the point of his visit was to show the world that the turbine worked and "there was nothing mystical to observe here".
"It's quite clear and simple: the turbine is there and can be delivered, but someone needs to say 'I want to have it'".
For Canadian Foreign Minister Melanie Joly, whose government has faced criticism for returning the turbine in violation of its own sanctions, the present impasse was worth it as an illustration of the Kremlin's purpose.
"We called his bluff," she said at a meeting with her German counterpart Annalena Baerbock in Montreal. "It is now clear that Putin is weaponising energy flows through Europe."
Even if Russia took back the turbine, Scholz warned that Germany could face more disruptions further down the line and that supply contracts might not be honoured.
He also said it "can make sense" for Germany to keep its three remaining nuclear power plants running beyond a planned shutdown at the end of 2022, a policy u-turn that has gained support given the risk of a total Russian gas cut-off in winter.
STANDING TOGETHER
A senior manager at Kremlin-controlled Gazprom has said the delivery of the turbine after servicing was not in line with the contract and that it had been sent to Germany without Russia's consent.
Standing next to Scholz, Siemens Energy CEO Christian Bruch confirmed that there were ongoing talks with Gazprom, "but no agreement".
Collapsing gas supplies and rocketing prices have sparked recession warnings for the German economy, Europe's largest, and raised fears of energy shortages and rationing going into winter.
After being forced to bail out the utility Uniper when it became an early casualty of the gas crisis, Scholz's government will have to amend newly introduced energy reforms, sources told Reuters on Wednesday. [L8N2ZF314]
Scholz has called for Germans to steel themselves for rising bills and his government has urged them to make energy savings wherever possible, such as taking shorter showers.
"This is now a moment where we have to stand together as a country. But it is also a moment where we can show what we are capable of," he said.
But he chose not to address questions about his Social Democrat predecessor, former Chancellor Gerhard Schroeder, who has become increasingly derided in Germany for his pro-Russian views and friendship with President Vladimir Putin.
Schroeder said Russia was ready for a negotiated settlement to end the war in an interview published on Wednesday, after travelling to Russia to meet Putin last week.
Putin told Schroeder that Nord Stream 2 could provide 27 billion cubic metres of gas to Europe by the end of the year if allowed to operate, Peskov said.
"Putin explained everything in detail, and the former chancellor asked if it was possible to use Nord Stream 2 in a critical situation," Peskov said. "Putin was not the initiator, Putin did not offer to turn it on, but Putin said that it is technologically possible, and this complex mechanism is ready for instant use."
Scholz signalled that Nord Stream 2 would not be used as an alternative. "We have terminated the approval process, for good reason," Scholz said. "There is sufficient capacity at Nord Stream 1, there is no lack."
(Reporting by Christoph Steitz in Muehlheim, Allison Lampert in Montreal and Ismail Shakil in Ottawa, writing by Kirsti Knolle and Matthias WilliamsEditing by Madeline Chambers, Elaine Hardcastle and David Evans)
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