Germany ‘getting ready for the worst case’ as Russia threatens to cut gas off

Germany 'getting ready for the worst case' over Russian gas

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Stefanie Bolzen has warned that Berlin is already taking measures to prepare for a “worst-case” scenario in the event Russia stops the flow of natural gas which feeds the German industry and is key to the country’s economy. 

Ms Bolzen told BBC News: “The companies in Germany are going to continue paying in Euro. These are the contracts and actually, now there has been a little change because they now have to pay on the Gazprombank.

“No one really understands why Putin did this.

“Even the German government has said we have to take time and look into these new instructions we are getting.

“What is important to say though, is that I think it was Tuesday of this week that the German government triggered the first level of emergencies.”

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“So Germany is getting ready for the worst-case that gas is not coming from Russia,” she added

European governments and companies were working on Friday on a common approach to President Vladimir Putin’s demand that they pay for Russian gas in roubles as the threat of an imminent halt in supplies eased.

European capitals have been on alert for a disruption to gas imports for weeks as Putin seeks retaliation over the West sanctioning Russia for invading Ukraine.

A crunch point appeared to be in the offing when Moscow issued a decree on Thursday requiring foreign buyers of Russian gas to open rouble accounts in state-run Gazprombank from Friday or else risk being cut-off.

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The Kremlin said on Friday it would not immediately turn off gas exports to Europe as payments on deliveries due after April 1 come in the second half of this month and May.

With weeks left before bills are due, governments in Europe, which relies on Russia for more than a third of its gas supply, were talking to their energy companies about how to pay them.

Ditte Juul Jorgenesen, director general of the European Commission’s energy division, has said the EU was “working closely with member states and operators.”

“EU coordination today to establish a common approach on currency payments for gas contracts with Russia,” she tweeted on Friday. 

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Berlin said it was examining Putin’s decree, with an economy ministry spokesperson saying private contracts were valid and that the country was paying in euros for Russian gas.

Germany, which depends on Russia for 40 percent of its gas needs, has already activated an emergency plan that could lead to gas rationing if supplies drop too low.

Gazprom said on Friday it was exiting its business in Germany.

It was not immediately clear how the move would affect the supply of Russian gas into Europe’s largest economy.

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