European shares slide as Nord Stream shutdown extends

European shares fell on Monday after Russia extended a halt to gas flows through the Nord Stream 1 pipeline to Europe, raising concerns about energy prices and growth and prompting governments to announce emergency measures.

The pan-European Stoxx 600 index was down 1.6 percent by 0713 GMT, while the German DAX was down 2.8 percent.

Shares of German utility companies Uniper, RWE and E. ON and BNE are between 3.5% and 11%.

Gazprom announced on Friday that the main pipeline to Germany would remain closed indefinitely while it was expected to restart on Saturday after three days of maintenance.

On Sunday, the Kremlin blamed European politicians for keeping the main gas pipeline closed, saying their economic sanctions had hampered pipeline maintenance.

A document seen by Reuters showed that European Union energy ministers will discuss options to curb high energy prices, including setting a cap on gas prices and emergency credit lines for energy market partners. Union ministers are scheduled to meet on the ninth of September.

Investors are also awaiting the European Central Bank’s meeting this week. It is expected to raise the interest rate by 75 basis points to curb inflation, which reached a record level.

Shares of energy companies in Europe rose 1 percent amid a rise in oil prices.