Germany Decries ‘Economic Attack’ By Putin As It Inches Towards Gas Rationing

Breaking Business Germany Decries ‘Economic Attack’ By Putin As It Inches Towards Gas Rationing Siladitya Ray Forbes Staff Covering breaking news and tech policy stories at Forbes. New! Follow this author to improve your content experience. Got it! Jun 23, 2022, 07:23am EDT | Share to Facebook Share to Twitter Share to Linkedin Topline Germany triggered the second phase of its three-stage gas emergency plan on Thursday and urged its citizens to cut back on usage, as it flagged concerns about a drop in supplies from Russia that could force the government to intervene directly and ration the fuel if the situation deteriorates further.

Robert Habeck, Federal Minister for the Economy and Climate Protection, speaks at a press conference . . .

[+] on energy and supply security. dpa/picture alliance via Getty Images Key Facts German economics minister Robert Habeck triggered the “alert stage” of the emergency plan due to Russia’s cut back on supplies of gas since June 14, his ministry announced in a press release . The minister said the “security of supply” was still guaranteed at the moment but warned that the situation is tense.

According to Habeck, Germany has 58% more gas available in storage compared to last year, but that could deplete rapidly as supplies via the Nord Stream 1 pipeline are currently down to 40% of the total capacity. Calling the situation a “gas crisis,” Habeck warned that gas is now a “scarce commodity” and its already steep price is likely to rise further. The minister urged local governments, companies and citizens to cut back on gas usage as much as possible “so that we can get through the winter.

” The German government intends to have a storage level of 90% by December as part of its emergency plan, something Habeck says will now be difficult to achieve without future measures. Crucial Quote In his statement, Habeck placed the blame for the ongoing crisis on Russian President Vladimir Putin: “We mustn’t delude ourselves: cutting gas supplies is an economic attack on us by Putin. It is clearly Putin’s strategy to create insecurity, drive up prices and divide us as a society… Even if you don’t really feel it yet: we are in a gas crisis.

” Key Background In March, the German government triggered the “early warning phase” of its gas emergency plan in anticipation of a disruption in supplies from Russia—which had demanded payments in rubles for gas supplies after being hit with crippling economic sanctions by the European Union following its invasion of Ukraine. If the final “ emergency phase ” of the plan is triggered, Germany will be able to intervene and take over the distribution of gas. Such a situation would lead to rationing where supply to certain groups including households, hospitals and some gas-fired power stations would be prioritized.

Russia reduced the flow of gas through the Nord Stream 1 pipeline to Germany earlier this month, claiming it was dealing with equipment issues . The Russian state-run gas giant Gazprom has already suspended supplies to Poland, Bulgaria, Netherlands, Denmark and Finland after they refused to comply with Putin’s diktat of paying for the gas using a rubles account. The German government’s decision to halt approval of the Nord Stream 2 pipeline in February was among the first major retaliatory measures taken by a Western nation against Russia just days before the start of its invasion of Ukraine.

Futher Reading Germany takes step closer to gas rationing (BBC) Germany triggers gas alarm stage, accuses Russia of ‘economic attack’ (Reuters) Follow me on Twitter . Send me a secure tip . Siladitya Ray Editorial Standards Print Reprints & Permissions.