The flow of Russian natural gas to Europe stops from Monday, as under the pretext of maintenance work, the Moscow is closing the Nord Stream 1 pipeline and no one knows if and when it will reopen.
Germany is on energy alert while French Finance Minister Bruno Le Maire has warned that Europe must be prepared for the possibility of Russian gas being cut off, saying it is the most likely scenario.
“Let’s prepare for a Russian gas cut. Today is the most likely scenario. It assumes that we will accelerate our energy independence,” said Bruno Lemaire.
The hot energy front and the security of supply will concern EU finance ministers at tomorrow’s Eurogroup meeting in Brussels.
Canada unblocks Nord Stream 1 turbine
The Kremlin claimed that for its reopening Nord Stream 1, a German Siemens turbine is needed, which was being repaired in Canada but was not returned to Russia due to Western sanctions.
Brussels intervened in the case and after consultations, Canada agreed to return the repaired gas turbine back to Germany for use in the Nord Stream pipeline according to SKAI.
Germany is preparing for the inability to pay bills
The situation in Germany does not bode well. Households are facing exorbitant bills and officials are proposing a moratorium on power and heating cuts in case of non-payment.
“We have to be prepared for difficult times in the winter when consumers need special protection. In such a crisis situation, no one should cut off their electricity or gas because they are late in paying the bill,” said German Consumer Protection Minister Steffi Lemke.
Stournaras: This is the perfect storm
In the meantime, Yannis Stournaras, governor of the Bank of Greece, spoke to the Bloomberg agency about a “perfect storm”.
“It is true that we are in the middle of a perfect storm, pandemic power disruptions, higher energy prices, gas prices are 500% higher than the beginning of the year, electricity prices are 250% higher than the beginning of the year.”
Concern in the UK too
Harsh food and energy prices are getting ready to face in Britain as well. Analysts estimate that there is a risk of 5 to 6 million households being in a state of energy poverty.
“Gas is also used to make fertiliser, so we’re seeing all these food prices shoot up, but I mean, speaking more generally, a lot of households in Britain are facing rising bills that are putting 5-6 million households in a situation of ‘energy poverty” in relation to last April”, explains Leon Izbiki analyst of Energy Aspects.
Source: News Beast
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