Â鶹´«Ã½

Skip to main content

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

Share

Germany issued an "early warning" of possible on Wednesday over a 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 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 Wednesday 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, that Wednesday's alert was aimed at avoiding a deterioration in gas supplies but said consumers should be prepared for "all scenarios."

The European Union depends on Russia for about 40% of its natural gas, and Germany is Moscow's biggest energy customer on the continent. EU sanctions imposed on Russia over its invasion of Ukraine include a ban on new investment in energy projects but do not target oil and gas exports.

Habeck said this week that payment in rubles is not acceptable to Berlin and he has described Russian President Vladimir Putin's demand as "blackmail."

Putin has given Russia's central bank and Gazprom, the state gas company, until Thursday to come up with proposals for accepting payments in rubles, rather than U.S. dollars or euros as agreed in supply contracts.

With the sanctioned Russian central bank banned from swapping euros and dollars for rubles, Moscow is trying to find a new stream of cash it can spend easily.

Putin could "directly finance the war, the army, the supply of the soldiers, the supply of gasoline for the tanks and the construction of weapons in his own country" with rubles, Habeck said Monday.

The European Union is planning to this year by as much as 66% as it prepares for a . But Europe would struggle to survive for long without Russian gas, and finding alternative sources presents a huge logistical challenge. A recession would be all but assured if Putin cuts off supplies.

Habeck said a crisis team of experts from government, regulators, gas network operators and Germany's 16 federal states had been convened to monitor the situation closely and take measures "to increase supply security" if necessary.

— Charles Riley and Chris Stern contributed reporting.

CTVNews.ca Top Stories

A team of tornado experts is heading to Fergus, Ont. after a storm ripped through the area Sunday night.

Why brain aging can vary dramatically between people

Researchers are uncovering deeper insights into how the human brain ages and what factors may be tied to healthier cognitive aging, including exercising, avoiding tobacco, speaking a second language or even playing a musical instrument.

Local Spotlight

For the second year in a row, the ‘Gift-a-Family’ campaign is hoping to make the holidays happier for children and families in need throughout Barrie.

Some of the most prolific photographers behind CTV Skywatch Pics of the Day use the medium for fun, therapy, and connection.

A young family from Codroy Valley, N.L., is happy to be on land and resting with their newborn daughter, Miley, after an overwhelming, yet exciting experience at sea.

As Connor Nijsse prepared to remove some old drywall during his garage renovation, he feared the worst.

A group of women in Chester, N.S., has been busy on the weekends making quilts – not for themselves, but for those in need.

A Vancouver artist whose streetside singing led to a chance encounter with one of the world's biggest musicians is encouraging aspiring performers to try their hand at busking.

Ten-thousand hand-knit poppies were taken from the Sanctuary Arts Centre and displayed on the fence surrounding the Dartmouth Cenotaph on Monday.

A Vancouver man is saying goodbye to his nine-to-five and embarking on a road trip from the Canadian Arctic to Antarctica.