Russia-Ukraine War: Germany Warns Of Possible Gas Shortage

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Germany issues ‘early warning’ of possible gas shortages as Russia threatens supplies

Germany issued an "early warning" of possible natural gas shortages on today over a payments dispute with Russia that could lead to energy rationing in Europe's biggest economy. 

  Moscow said last week that it wanted to be paid in rubles, rather than US dollars or euros as per existing gas supply contracts, and threatened to cut off supplies if that didn't happen. 

 The Kremlin's demand has been rejected by Germany and the G7 group of leading developed economies. 

 The German government said this today that the country had enough gas for now, but it urged all consumers — from companies to hospitals and households — to reduce their use as far as possible with immediate effect.

“There are currently no supply shortages,” Economy Minister Robert Habeck said in a statement. “Nevertheless, we must take further precautionary measures to be prepared for any escalation by Russia.”

 German gas storage is currently filled to 25% capacity, he added.

The “early warning” is the first of three alert levels set out in Germany’s plan to manage gas supplies in a crisis. If the situation deteriorates, the government would declare an “alarm,” followed by an “emergency.” At that highest state of alert, regulators can ration gas to maintain supplies to “protected customers” such as households and hospitals.

Industrial users would be the first to face cuts.
“This means that industrial production gets lost, that supply chains get lost,” Leonhard Birnbaum, chief executive of German energy group E.ON, told public broadcaster ARD, according to Reuters. “We are certainly talking about very heavy damages.”
Klaus Mueller, head of Germany’s energy market regulator, said in a tweet that Wednesday’s alert was aimed at avoiding a deterioration in gas supplies but said consumers should be prepared.

Edited by Gloria Omang

Source: CNN.com