Gas supply crisis fears grow as Germany triggers ‘early warning'
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Loading... - Liam Bakker
- 30 Mar 2022
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Germany has taken the first official step towards gas rationing under its emergency plan as fears grow over a potential stop in Russian deliveries amid a standoff over payments in roubles.
The move on Wednesday by the European Union’s industrial powerhouse was the clearest sign yet the bloc was preparing for supply issues after rolling out far-reaching sanctions in the wake of Russia’s invasion of neighbouring Ukraine five weeks ago.
“A crisis room will now be established in the ministry,” economy minister Robert Habeck told reporters in Berlin, adding that the team will be comprised of members from the economics ministry, the country’s regulator and the private sector.
The “early warning” measure, the first of three alarm levels under the government’s emergency gas plan, was “preventative” and intended to assure supply of the fuel, said Habeck, who is also energy minister and vice chancellor.
Gas reserves were currently at 25 percent of capacity, Habeck added, cautioning that a stop to deliveries from Russia would have “serious” consequences, though supplies continued to flow normally.
Russian President Vladimir Putin has said that Russia will soon only accept payments for gas in roubles, likely an effort to bolster its currency. Western countries have said they will not comply.
On Tuesday, the Kremlin reiterated the payment demand for gas deliveries to the EU – after ministers from the Group of Seven countries called this arrangement “unacceptable”.
“We are not going to accept a breach of the private contracts” for gas deliveries, Habeck said in the news conference.
The invasion of Ukraine has prompted a series of sanctions on Russia that have left it scrambling for foreign currency reserves. However, Europe has not cut off its purchases of oil and gas. Read More...
