Analyst predicts serious consequences of Germany’s refusal of Russian gas
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“It’s killing the industry”
On August 22, gas prices on the European ICE exchange rose to three thousand dollars per thousand cubic meters, which was the highest figure since March this year. Igor Yushkov, an analyst at the National Energy Security Fund, believes that Germany will pay a high price for refusing to supply Russian gas through Nord Stream, as gas prices continue to rise, and many industrial enterprises may be left without supplies.
In an interview with Lenta.ru Yushkov said that Germany is in no hurry to solve problems with Russian gas supplies, because, having practically filled underground storage facilities, the country’s authorities relaxed in anticipation of floating LNG terminals. However, as the expert noted, there are no guarantees that the heating season will be able to pass normally due to the fact that the risks remain colossal, prices are high, and this is killing the industry.
Although Germany will not freeze without Russian gas, the analyst predicts that it will be costly for the country to cut off domestic gas supplies. Yushkov noted that a number of industrial consumers are already dying off due to the unprecedented rise in prices, so it became obvious that it was impossible to overcome “this story” without worsening the economic situation.
According to the expert, the industry will suffer enormous damage. The analyst believes that consumers will either leave and turn off on their own due to the inability to pay for gas at the new prices, or they will be turned off by the government in order to save gas for the population and social facilities.
Read also: Panic broke out in Germany over the news about the suspension of Nord Stream
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