Germany admits crisis due to lack of Russian gas

European countries are preparing for a fuel hunger strike

By early November, Germany’s natural gas reserves are in danger of running out. According to the head of the German Federal Network Agency Klaus Muller, this situation will be the result of a complete cessation of the supply of “blue fuel” from Russia. From October 1, German consumers will have to pay an additional tax to prevent the bankruptcy of the country’s energy companies, which are forced to lose income due to restrictions on the export of Russian hydrocarbons. Will Berlin fall into the “gas hole” and what other European states are one step away from a fuel hunger strike, MK experts explained.

According to Klaus Müller, the FRG is accumulating gas reserves at an accelerated pace in order to ensure an uninterrupted supply of “blue fuel” to domestic consumers in the winter. By October, the country’s underground storage should be 85% full, but in the event of an unusually cold autumn, as forecasters predict, these volumes may not be enough. Given the potential for further disruptions in the supply of raw materials, reaching the November 95% target also seems “elusive” and, at best, fuel tanks will be only three-quarters full. In this case, the Germans will either have to turn off some industrial facilities, or force ordinary consumers to save on the consumption of each cubic meter of gas.

Vladislav Antonov, financial analyst at BitRiver:

“The EU countries will not be able to avoid a gas hunger strike in the coming heating season. Even the timely filling of underground storage facilities on the continent will not be a 100% guarantee that countries will survive the winter. Prompt filling of European UGSFs makes it possible to smooth out seasonal or daily consumption irregularities. But to ensure such a process, raw materials must flow uninterruptedly to Europe. The imposed sanctions do not allow Gazprom to use the Nord Stream 1 pipeline at full capacity. Under such conditions, neither the Russian nor the European parties can promise stable supplies of raw materials. To avoid catastrophic consequences in winter, Europe needs to lift sanctions and promote the launch of Nord Stream 2. However, Germany believes that the issuance of a permit to operate this route will only increase Europe’s dependence on Russian gas. EU officials have taken a principled position and do not want to admit their mistakes. They believe that it is better to freeze the population and close all factories than to solve the gas crisis.”

Sergei Pravosudov, Director of the National Energy Institute:

“Gas quotes on European stock exchanges are again close to historical levels. Consumers of the Old World are ready to repurchase the remaining fuel on the market not only from Asian competitors, but also from their counterparts in the European Union. There is a danger that a number of states receiving “blue fuel” in transit will begin to select it to meet their own needs. In Europe, the struggle for energy resources is getting tougher every day. Gazprom has already predicted that the cost of a thousand cubic meters could rise to $4,000 due to the shortage. This will not be the limit. The only question arises: who will be able to actually pay for raw materials at record rates, and if the deals are made on credit, then who will be responsible for the accumulated obligations in the future? There is a suspicion that everyone will be heavily indebted to each other and then dispute the calculations in their relationship for decades.