Complete cut-off of Russian gas looms met by EU leaders

EUleaders threatened a complete cut-off ofandRussia'son Friday with rising energy prices inDiscuss how to deal with. } Gas has accused Moscow of "weaponizing" energy by supply pressure, warning that Germany could partially shut down its industry this winter.

The Friday summit in Brussels, the day after celebrating setting Kieu on the road to block membership, provides a calm reflection on the economic implications of Russia's invasion of Ukraine. It was planned.

According to a draft summit statement seen by Reuters, leaders from 27 European Union countries have seen sharply higher prices and slower global growth in a war that began just four months ago. Will blame.

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Following unprecedented western sanctions imposed on the invasion, 12 Europeans so far Countries have been overwhelmed by the reduction of gas flows from Russia.

"It's only a matter of time before Russians shut down all gas transport," said EU officials before the Friday meeting.

Germany's Roberto Havek The Minister of Economy is heading for a gas shortage if his country remains Russia's supply as low as it is now and some industries have to be closed in the winter.

"Companies will stop production, dismiss workers, the supply chain will collapse, and people will be in debt to pay for heating," he told Der Spiegel. Added that it is part of Russian President Vladimir. Putin's strategy to divide the country.

The EU relies on Russia for 40% of its prewar gas demand, rising to 55% in Germany, leaving a huge gap to fill the already tight global gas market.

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'Gas weaponization '

According to a draft statement seen by Reuters, EU leaders "faced Russia's weaponization of gas" and the European Commission ensured "affordable supply" You would say you should find a way to do it.

EU countries have already invested billions of euros in tax cuts and subsidies to counter rising energy prices.

But it sums up large invoices for already stretched financial resources, leaving a lot of scrambling to find a solution, EU countries block to deal with soaring prices I disagree with the overall solution.

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Spain and Portugal determine cap gas prices However, in other states, if the government has to pay the difference between the cap price and the price of the international gas market, the price cap disrupts the energy market and finances the state. It warns that it will be further depleted.

"We need to start buying energy in bulk, we need to enforce price caps, we need to plan together to survive the winter," said Alexander Decrew, Belgium. The summit said the Prime Minister when he arrived in the EU on Friday.

"If we don't pay attention, the entire EU economy will fall into recession and all the consequences will come."

Blocks are featureless speed Although united to respond to the war, some sanctions, such as the planned embargo on Russia's oil imports, are affecting its economy.

Inflation rates in 19 euro-currency-sharing countries have exceeded record highs of 8%, and EU executives expect economic growth to drop to 2.7% this year.

Eurogroup chief Paschal Donohoe warned that Brock "must be aware of the risks that inflation may face if it is incorporated into the economy."

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“Inflation will become a real and durable part of our economy in the next few years, and the challenges we face in terms of living standards and costs will grow in the next few years. It's a very difficult task. ”

Rome is exceptional for discussing how to deal with rising gas prices. He called for the reconvening of EU leaders for a mid-July meeting, but EU officials said they plan to do so at this time.

However, another EU official said some EU leaders are considering the option of holding an additional summit in July to discuss broader economic issues. ..

(Report by Phil Blenkinsop, Marine Strauss, Bart Meijer, Francesco Guarascio, Kate Abnett, Jan Strupczewski, Additional Report by Miranda Murray in Berlin, Gianluca Semeraro in Rome, Written by Jan Strupczewski, Phil Blenkinsop and Ingrid Meijer; edited by John Charmers, Sam Holmes and Alex Richardson)

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