The German government said Wednesday that the country has enough gas at the moment, but urged all consumers – from companies to hospitals and households – to reduce their use as much as possible with immediate effect. “There is no shortage of supply at the moment,” 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 full at 25% of capacity, he added. “Early warning” is the first of three levels of alert set out in Germany ‘s plan to manage gas supplies in a crisis. If the situation worsens, the government will declare an “alarm” and a “state of emergency” will follow. In this higher state of alarm, regulators can use a gas stake 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 is being lost, that supply chains are being lost,” Leonhard Birnbaum, chief executive of the German energy group E.ON (EONGY), told the public broadcaster ARD, according to Reuters. “We are definitely talking about very heavy damage.” Klaus Müller, head of Germany’s energy market regulator, tweeted that Wednesday’s alarm was intended to prevent a deterioration in gas supplies, but said consumers should be prepared for “all scenarios”. A team of experts from the government, regulators, gas network operators and the 16 German L κραnder have been convened to monitor the situation closely and take steps to “increase security of supply” if needed, Habeck said. . The European Union is dependent on Russia for about 40% of its natural gas, and Germany is Moscow’s largest energy customer on the continent. EU sanctions imposed on Russia over its invasion of Ukraine include a ban on new investments in energy projects, but do not target oil and gas exports. Habeck said this week that the payment in rubles was not acceptable to Berlin and described Russian President Vladimir Putin’s demand as “blackmail”. Putin has given Russia’s central bank and Gazprom, the state-owned gas company, until Thursday to submit proposals for accepting payments in rubles rather than US dollars or euros, as agreed in supply contracts. As Russia’s central bank has been banned from exchanging euros and dollars for rubles, Moscow is trying to find a new cash flow that it can easily spend. Putin could “directly finance the war, the army, the supply of troops, the supply of petrol for tanks and the manufacture of weapons in his country,” in rubles, Habeck said on Monday. The European Union plans to cut Russian gas consumption by up to 66% this year as it prepares for a complete rupture with its only major energy supplier. But Europe would struggle to survive long without Russian gas, and finding alternative sources is a huge logistical challenge. A recession would be almost certain if Putin cut off supplies. The Netherlands – another of Russia’s major energy customers in Europe – said on Wednesday it would urge the public to use less gas in a bid to reduce its dependence on Moscow. However, the Dutch government would not activate its plan for the gas crisis, Economy Ministry spokesman Tim van Dyke told CNN. Instead, it hoped to reduce gas use in the Netherlands through a campaign aimed at its citizens. The campaign was under way for weeks in light of the war in Ukraine and did not begin in response to Germany’s announcement, van Dijk added. – Charles Riley, Chris Stern and Benjamin Brown contributed to the report.
