Germany activates gas "warning stage" in Russia's "economic attack"

Germanytriggered an "warning phase" in an emergency gas program on Thursday in response to Russia's declining supply, but power companies soar We haven't even allowed the energy costs to be passed on to our customers. Europe's largest economy.

This measure is the latest escalation in the conflict between Europe and Moscow since Russia'sinvasion of Ukraine, and Russia's dependence on gas supply. Exposing and alternative energy sources.

This decision is primarily symbolic as a way to inform businesses and homes that painful reductions are underway. But it represents a major change for Germany, which has fostered a strong energy relationship with Moscow dating back to the Cold War.

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Low gas flow warns that Germany could fall into recession if Russia's supply shuts down altogether. S&P The Global Flash Purchasing Managers Index (PMI) showed on Thursday that the economy was losing momentum in the second quarter.

"We must not fool ourselves: the reduction of gas supply (Russian President Vladimir Putin) I by Putin It's an economic attack on us, "Economic Minister Roberto Havek said in a statement that adding Germans would need to reduce consumption.

Gas distribution should be avoided, but it cannot be excluded.

"From now on, gas is a rare commodity in Germany ... Therefore, we have an obligation to reduce gas. Consumption, now already in the summer."

Russia denies planned reductions in gas supply did. Gazprom, a state supplier, accuses of delaying the return of equipment maintained by western sanctions. The Kremlin said Thursday that Russia would continue to be a credible energy supplier and "strictly fulfill all its obligations" to Europe.

In Phase 2 plans, Berlin will offer a € 15 billion (US $ 15.76 billion) credit line to fill gas storage facilities and launch a gas auction model this summer for industrial users. Promotes gas savings.

If the government decides that the risk of long-term supply shortages is high, it is the second of a three-step emergency plan. Activate the "alarm stage". It contains provisions that help utilities quickly pass on high prices to industry and households, thereby curbing demand.

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Habeck said Germany wasn't at that time, but prices continue to rise due to supply pressures. If so, the clause may be triggered, deepening the loss of the power company.

"It becomes negative every day and every week. And if this negative becomes too big for companies to put up with it and it collapses, the whole market may collapse someday. Therefore, Lehman Brothers is energy. Affects the system. "

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Since Gazprom reduced the flow through the Nordstream 1 pipeline across the Baltic Sea to just 40% of capacity last week, the following: The transition to the stage is the subject of speculation.

Germany, facing a decline in deliveries from its major supplier Russia, has been in Phase 1 of its emergency plan since late March. This focuses on closer monitoring of daily flow and filling of gas storage facilities.

"The declaration of the alert stage does not immediately change the basic situation," said German energy provider E.ON. However, it is important that the government has taken steps to stabilize markets and gas supplies in preparation for a significant decline in imports, he told Reuters in an email.

Risk of complete confusion

Second At the stage, the market can still function without the need for state intervention starting in the final emergency stage.

"The recent decline in inflows to Germany through the NordStream1 pipeline will lead to gas shortages next winter if it stays at these levels," Saxo Bank's Product Strategy Responsibility. Ole Hansen said.

The European benchmark Dutch wholesale gas prices rose 8% on Thursday.

Russia could cut off gas to Europe altogether to strengthen its political influence, the head of the International Energy Agency (IEA) said Wednesday, Europe is now He added that he needed to prepare.

On Thursday, Russian gas flow to Europe via Nord Stream 1 and Ukraine was stable, but the regurgitation of the Yamal pipeline turned upward, operator data showed.

Some European countries have outlined measures to withstand supply pressures and avoid winter energy shortages and inflation surges against Russia. You can test the continent's determination to maintain sanctions.

With supply cuts, German companies should consider painful production cuts and rely on previously unthinkable forms of energy pollution to adapt to Russia's outlook for gas shortages. became.

On Wednesday, the European Union suggested temporarily relying on coal to fill the energy shortage, calling Moscow's gas supply cuts a "fake move."

Frans Timmermans, Head of Climate Policy at Brock, said Thursday that 10 of the 27 EU member states issued "early warnings" about gas supplies. This is the first and least serious of the three crisis levels identified by EU energy security regulations. ..

"The risk of complete gas destruction is more realistic than ever," he says. I did.

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