Explained: Germany one step away from rationing gas, Russia cuts supply

Updated : Jul 14, 2022 15:03
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EJ Biz Desk

Germany, Europe's biggest economy, is at the brink of a energy crisis as supplies from Russia dwindle. Germany has raised the risk level in its national gas emergency plan to the second-highest “alarm”. 

Russia's state gas company Gazprom slashed flows through the Nord Stream 1 pipeline to Germany by 60% starting June 14

“We mustn’t delude ourselves: cutting gas supplies is an economic attack on us by Putin,” Economy Minister Robert Habeck said. “We defend ourselves against this. But it will be a rocky road that we as a country now have to walk. Even if you don’t really feel it yet: we are in a gas crisis." 

The third and highest “emergency” level would involve state control over distribution and bring back 'rationing' of scarce commodities. Germany gas-storage facilities, are currently around 58% and require 100 days at current rate to be back upto average level of 90%. 

Germany, which relies on Russia for more than a third of its gas supplies, had previously sought to maintain robust energy ties with Moscow despite rising sanctions. 

GermanyGasRussia

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