Germany has issued an “early warning” about a possible gas supply disruption amid a payment freeze with Russia.
Russia has urged “unfriendly” countries to pay for its gas in rubles, but the EU, which mainly pays in euros, has dismissed the idea.
On Wednesday, Federal Economics Minister Robert Habeck called on consumers and companies to reduce consumption in anticipation of possible bottlenecks.
Germany gets about half of its gas and a third of its oil from Russia.
Berlin has pledged to reduce its reliance on Russian energy over time but warned of a recession if supplies were suddenly halted.
Under an existing gas contingency plan, the “early warning phase” is the first of three steps designed to prepare the country for a potential supply shock.
Mr Habeck told a press conference that gas supplies were secure for the time being, but added: “Nevertheless, we need to step up precautionary measures to be prepared for an escalation from Russia.”
“With the declaration of the early warning level, a crisis team was convened.”
- Russia doubles interest rates after ruble collapses
- Russia is considering accepting Bitcoin for oil and gas
The West has imposed sanctions on Russia in response to its invasion of Ukraine.
In response, Russian President Vladimir Putin has called for natural gas exported to Europe or the US to be paid for in rubles. Analysts say the move would support the country’s currency, which fell sharply after the invasion but is gradually recovering.
Europe, which imports about 40% of its gas from Russia and pays mostly in euros, says Russia’s state-controlled gas giant Gazprom does not have the right to renegotiate contracts.
Add Comment