Germany has been busy working on emergency measures to help the country cope in the event of an abrupt stoppage of Russian natural gas flows, Reuters reported on Tuesday, citing government sources.
German officials say it could include further loans to energy firms and their nationalization
According to the outlet, the proposed package includes providing more loans to energy companies from Germany's state development bank KfW to help them cope with soaring prices, which have fluctuated wildly since then. the start of Moscow's military operation in Ukraine and the ensuing Western sanctions. , even from Germany.
Reuters sources also said Berlin could resort to nationalizing critical businesses such as energy companies and refineries.
Note: - check out the post right here EU state working on emergency plan for Russian gas halt – media.
Russia supplied 55% of Germany's gas imports in 2021, and many industries rely heavily on Russian energy. However, Berlin has come under pressure to sever ties with Russia over the situation in Ukraine. The government announced last month that it planned to reduce dependence on Russian supplies as soon as possible, but it is unlikely to do so before at least the middle of 2024. So far, Berlin sanctioned Russian oil and coal, but only slightly reduced Russian gas supplies. .
The sources say that while Germany is unlikely to stop buying Russian gas in the coming months, Berlin fears Russia could cut off supplies abruptly due to sanctions. Measures to deal with it have not yet been finalized, but in April Berlin passed a law allowing the government to take control of energy companies if necessary.
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Earlier, German officials also said they were considering rationing gas in case of an emergency. The national energy regulator (Bundesnetzagentur) said last month it was considering prioritizing industries over households if Russian gas was cut.
Fears intensified after Russian energy giant and top exporter Gazprom halted gas exports to Poland and Bulgaria in April after the two countries refused to pay for Russian gas using the new mechanism based on the ruble that Moscow introduced to protect itself from obligations linked to the dollar and the euro. punishments
According to Reuters sources, Germany has almost reached the limit ofsanctions against Russia it could impose without bringing down its own economy. Major German companies have reportedly pressured the government in recent weeks to refrain from sanctioning Russian gas.