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Germany declares a gas crisis as Russia cuts supply to Europe

Berlin / London (CNN Business)Europe's largest economy is currently short of natural gas, exacerbating the crisis I'm letting you. Russia cuts the faucet, so planto save the supplybefore winter.

Germany launched the second phase of thethree-stage gas emergency programon Thursday, one step closer to distributing supply to industry. This is a step that will have a big impact on the manufacturing industry. The center of the economy.

"Germany is running out of gas," Economic Minister Robert Habeck told reporters at a press conference in Berlin. .. "

This month, Russia's further cuts in supply to Germany, Italy and other European Union member states exacerbated the European energy crisis.

Russia's state gas company, Gasprom blamed the Western decision last week to significantly reduce the flow of Node Stream 1 by cutting its pipeline to Germany by 60% and withholding critical turbines for sanctions. Italian energy giant ENI

EU12 countries So far have been affected by Russia's gas supply cuts, said Brock's climate policy chief. One Fran Timmermans told Thursday, all of which is part of Russia's strategy to undermine our unity, "Timmermans told EU lawmakers.

'Economic conflict'

Habeck called on Germans to reduce consumption as part of their national efforts to prepare for the "next winter months."

He added that raising the German government's decision level to "warning" would follow Russia's delivery cuts and continued high market prices for gas since June 14. ..

According to data from the Intercontinental Exchange, European natural gas futures prices have risen about 60% since mid-month, trading at around € 133 (MWh) per megawatt hour (MWh). exchange.

Habeck says Germany's gas storage facility is 58% full, higher than this time last year, but the goal of reaching 90% by December cannot be achieved without further measures. Said.

"We are in financial conflict with Russia," Habeck said.

Gazprom's recent curtailment of gas flow occurred after it had already cut off supply to energy companies in Poland, Bulgaria, Finland, and Denmark, Germany, and the Netherlands because it refused to meet the Kremlin's request. To do. It will be paid in rubles.

Germany, Austria, and other EU countries are now looking at coal and oil-fired power plants, so more gas will be diverted to residential heating storage during the winter. can do.

Europe has been trying to reduce Russia's dependence on natural gas since Ukraine invaded in late February. Germany has succeeded in reducing Moscow's share of imports from 55% before the start of the war to 35%.

But to find an alternative supply last week when a major U.S. liquefied natural gas producer said the Texas facility would be completely closed for 90 days after the fire broke out. Choice has been knocked out. According to analysis firm Vortexa, Freeport LNG has produced about one-fifth of US LNG exports so far this year.

Germany launched the first "early warning" phase of its emergency energy program in March. The "alarm" phase declared on Thursday is followed by an "emergency" if the situation worsens. In its highest alert, regulatory agencies can distribute gas to maintain supply to "protected customers" such as homes and hospitals. Industrial users will face reductions first.

— Anna Cooban, Sharon Braithwaite, James Frater contributed to this article.