Gas: what happens if Putin turns off the taps

There war in Ukraine it assumes more and more, and it was inevitable, also the dimension of energy warfare. After the stop to supplies to some Nordic countries and to the cut towards the Germany, the prospect is that of a total shutdown of the taps by Moscow. A prospect for which the European Union must prepare in time, as stressed by the President of the European Commission Ursula von der Leyen.

The hypothesis of the total cut of supplies

“We must prepare for further problems in gas supplies, even for a full cut by Russia – he said speaking in the plenary session of the European Parliament in Strasbourg – today overall 12 member countries are directly affected by a total or partial reduction in gas deliveries. It’s obvious: Vladimir Putin continues to use energy as a weapon. That is why the Commission is working on an emergency plan: we will present this plan and the necessary tools by mid-July. Member States have their national contingency plans already in place. This is good, but we need European coordination and joint action. We must make sure that, in case of severe difficulties, the gas flows to the places where it is needed most. We have to provide European solidarity. And we have to protect the single market and industry value chains, ”she concluded.

Stocks of natural gas in the EU “A week ago it was 55% and now we should be above” that threshold. The G7 has decided to work internationally to arrive at a “potential mechanism” that imposes a ceiling on the price of Russian oil. It will take “a global approach, an alliance of many countries willing to put a ceiling on the price of Russian oil and it will be necessary to convince many countries that do not want to join the alliance so that they do not bypass” the ceiling.

Regulatory framework

The European Commission will present the “results” of its “assessments” on the changes to be made to the EU regulatory framework on economic governance, including the stability pact, “under the Czech presidency”, ie by the end of 2022, said von der Leyen, speaking at the plenary session of Parliament in Strasbourg. “In all the Member States – says von der Leyen – the state of the economy is increasingly troubling. The Covid-19 crisis has increased the deficits “.

“Then – he continues – as the economy began to recover, Russia launched its ferocious attack on Ukraine, which accelerated inflation in all sectors, from food to energy. And, at the same time, investments remain essential to succeed in the transition to a green and digital economy. Because of this we need to rethink how we produce growth, in a very different political and economic context. Take the rules of our economic governance: we need rules that allow for a higher level of investment and a healthy fiscal policy. Budget sustainability and growth go hand in hand, ”she concludes.

North Stream closed: Germany’s fears

After the announcement of Gazprom of a block for ten days, from 11 to 21 July. In an interview with the newspapers of the Funke Group, the president of the Federal Network Agency, Klaus Muller, said routine pipeline maintenance could “turn into political maintenance that will last longer.” And if the flow of gas from Russia stops “for a long time, then we will have to talk seriously about saving” in energy consumption, “Muller warned.

The first two terminals to regasify LNG gas in Germany will come into operation at the end of the year or at the beginning of the next, the Minister of Economy anticipated. Robert Habeck. In an interview with Welts am Sonntag, the minister announced that the German government has leased four floating terminals.

“Two ships are already available this year and will be deployed to Wilhelmshaven and Brunsbüttel later this year,” he said. Germany is moving away from Russian gas “at a pace never seen before”. Moscow has announced the stop of gas flow in Nord Stream from 11 to 21 of this month for alleged maintenance works.

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Gas: what happens if Putin turns off the taps

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