Germany warns of consequences if Russia cuts off gas 6
German Economy Minister Robert Habeck announced on March 30 that the country had activated the first phase of an emergency plan to respond to energy depletion situations due to concerns about Russia cutting gas supplies.
German business and union leaders on the same day warned that any disruption to gas supplies could devastate Europe’s largest economy, which has not yet fully recovered from the post-post supply chain crisis.
The worst situation in the scenario of Russia cutting off gas to Germany is said to involve the world’s largest chemical company BASF.
President of the German chemical workers’ union IG BCE Michael Vassiliadi warned that about 40,000 workers will have to reduce their working hours or be fired.
Christian Kullmann, head of the German Chemical Industry Association (VCI), also warned that the operating mechanism of chemical plants is very complex and `cannot be turned off and on like a microwave`.
`Once chemical plants shut down, they won’t be able to produce for months,` Kullmann said, saying the disruption would `cause a huge domino effect for much of the industry.`
A facility on the Nord Stream 1 pipeline system in Lubmin, Germany on March 8.
The chemicals sector is an important part of Germany’s export-oriented economy, as most industries such as automobiles, pharmaceuticals and construction cannot do without chemicals.
`Rising energy prices, but above all the scenario of gas supply cuts, will deal a heavy blow to the chemical industry, the mother of many German industries,` Vassiliadi said.
Although Germany announced that it would reduce its dependence on Russian energy, gas from this country still accounts for 40% of Berlin’s total supply, down from 50% before the war in Ukraine broke out.
When activating the energy supply emergency response plan, Minister Habeck said Germany’s gas reserves reached about 25% capacity.
The German Council of Economic Experts predicts that the country’s GDP in 2022 will only increase by 1.5% due to the impact of the current situation.
Germany’s main energy suppliers have warned in recent days that the risk of energy supply disruption cannot be ruled out after Russian President Vladimir Putin asked `less friendly` countries to pay for gas in copper.
Ministers in the G7 group refused to do this on the grounds that this was a unilateral action and a `violation of existing agreements`.
Pipelines transport Russian gas to Europe.
However, a German government spokesman said that in a phone call with Prime Minister Olaf Scholz yesterday, President Putin proposed a plan to pay in euros and transfer money to a bank belonging to Russia’s Gazprom group, then transfer the money to a bank belonging to Russia’s Gazprom group.
`Prime Minister Scholz did not agree with this process during the phone call, but asked the Russian side to send information in writing for better understanding,` a German government spokesman said.
The Kremlin said President Putin and Prime Minister Scholz agreed that experts from the two countries would discuss a plan to pay for gas in rubles.
Russia is providing 40% of Europe’s gas needs, with Germany, Italy and many Central European countries heavily dependent on this supply.
