I’ll be watching this carefully over the next day or so.
A megaton bomb exploded in Germany
Germany’s unprecedented deportation has been taking place for several hours now, with German Chancellor Olaf Scholz being forced to call Putin and accept a “preliminary agreement on payment in rubles.”
This is because Germany’s gas reserves are at a level of 25%.
This is an unprecedented humiliation and derailment of German foreign and energy policy.
A country that turned to Nord Stream 1, Nord Stream 2 and created countless problems in Greece putting a series of obstacles in the creation of East-Med. And not only.
The Vice Chancellor of Germany, Habek, is now coming to appeal to German consumers – individuals and companies – to make “as much savings in use as possible in order to save even a kilowatt hour ” !
This is a megaton fiasco! What happened to “green growth” and RES? And Mr. Winds wind turbines?
Kremlin: Germany will pay in rubles – The Chancellor denies
The Kremlin recently announced that Russian President Vladimir Putin and German Chancellor Olaf Solz had agreed to pay in rubles with the intention of not changing or worsening the terms of the energy deals.
In that context, Putin and Soltz agreed that experts from the two countries would discuss how Russian gas exports could be paid for in rubles. This was reported by Reuters, citing TASS.
After a while, the Germans tried to pick up the Putin-Solz communication, saying that “the Chancellor did not agree on payments for gas in rubles.
Payments will continue to be made exclusively in euros and, as usual, by remittances to Gazprom-Bank, which is not affected by the sanctions. The bank will then convert the money into rubles.
“Chancellor Soltz did not give his consent to this process in the conversation, but only asked for written information in order to better understand the process ,” the chancellor said, using capital letters, stressing that “the G7 agreement is still valid: the Energy supplies will be paid exclusively in euros or dollars. As provided by the contracts “.
German Vice Chancellor: “Save on use”
Hubeck called on consumers – individuals and businesses – to save “as much as possible” on use.
“Every kilowatt hour we save helps,” he said, adding that “the federal government is doing everything possible to continue to guarantee security of supply for the country,” adding that the European Commission has already been informed.
He also said that Germany’s gas reserves are at a level of 25%.
Habeck activated the stage “due to the impending deterioration of the supply situation”, following Moscow’s statement that it would demand payment in rubles despite the fact that the G7 group on Monday rejected its demands. He clarified, however, that for the time being there is no problem in the process.
“Nevertheless, we must increase the precautionary measures so that we are prepared in case of escalation on the part of Russia, ” the minister said.
It is also noted that Russian Deputy Foreign Minister Sergei Ryabkov said that the demand for payment of energy exports in rubles and not in dollars or euros does not constitute a breach of contract, but Russia is adapting to unprecedented pressures and added that he expects Russia and the European Union to reach an agreement on their differences in the coming days, reports Reuters, citing TASS.
Which sectors are directly affected
If Germany does not ensure an adequate supply of gas, the first to be affected will be industry, which accounts for a quarter of German demand.
“This means that industrial production is being lost, supply chains are being lost,” said Leonard Byrnbaum, chief executive of the E.ON energy group at ARD.
“What is certain is that we are talking about very big losses.”
Households will have priority over industry, while hospitals, care centers and other public sector institutions with disabilities will be the last to be hit by the gas shortage.
Alarm in Germany
It is noted that the German Minister of Economy stated today that he is implementing the first level of alarm regarding gas supplies, amid the ongoing demands of Moscow for payment in rubles.
Robert Hubeck told reporters that this is the first of three levels of alert, which does not impose restrictions on gas supplies and is a purely precautionary measure.
However, this measure implies the establishment of a crisis management team in his ministry, which will intensify the monitoring of the situation regarding gas supplies.
The three level plan of Germany
The Berlin Gas Emergency Plan provides for three levels of alert.
The first level, activated today by the German government, applies when there are indications that there may be an emergency in gas supplies.
The second level means an alarm when a supply disruption or extremely high demand affects the normal balance, but there can be correction without intervention.
The third level is a state of emergency and is activated when market measures cannot address shortages.
At this level, the network regulator, the Bundesnetzagentur, is called upon to decide how the country’s existing oil reserves will be distributed.
Russia’s largest German customers are EnBW’s Uniper, RWE and VNG, which have long-term contracts. They have not commented on questions about individual preparations to deal with the disruption of gas supply.
Russia: Gradual transition with product expansion
Russia will not immediately ask other countries to pay in rubles for gas imports, the Kremlin said today, promising a gradual transition and noting that Moscow would work on expanding its export list for which will ask to be paid in rubles.
Earlier in the day, Duma Speaker Vyacheslav Volodin warned the EU that if it wanted Russian gas, it would have to pay in rubles, saying the same would happen with exports of oil, grain, metals, fertilizers, coal and timber.