Germany Looks at Potential Rationing of Natural Gas After Russia Cuts Supply

Berlin triggered the second of its three-step plan to deal with gas shortages after the Kremlin-controlled energy giant Gazprom, the country’s biggest gas exporter, throttled delivery via the Nordstream pipeline by around 60% last week. Germany’s gas reserves are at 58% capacity, and the government now expects a gas shortage by December if supplies don’t pick up, Economy Minister Robert Habeck said.

The second step, dubbed the “alarm level” is a prerequisite for the government to enforce some of the gas-saving measures it announced at the weekend, including substituting coal to gas for power generation and creating financial incentives for companies that consume less gas.

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Rationing, which would come in the third step, would focus on industry and could severely impact companies that use gas as fuel or as a raw material for production, likely pushing Europe’s biggest economy into recession, economists and company executives have warned.


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