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ENERGY

Germany may place caps on gas use in winter, warns minister

As Russia continues to stem the flow of gas into Europe, the German Economics Minister believes emergency measures may have to be in place over winter.

Economics Minister Robert Habeck
Economics Minister Robert Habeck (Greens) gives a talk in Denmark on June 25th. Photo: picture alliance/dpa/Ritzau Scanpix Foto | Bo Amstrup

Economics Minister Robert Habeck (Greens) has warned that the government may have to step in to regulate gas usage if there are shortages this winter.

Over the colder months there is a “medium-term” threat of a scenario in which “reductions (in gas usage) will actually have to be imposed by law,” Habeck said before a meeting with other EU energy ministers in Luxembourg on Monday.

Such a reduction would lead to “a severe economic crisis” in Europe and Germany, he said. 

The minister did not say who exactly could be affected by reductions.

READ ALSO: German environmentalists call for caps on energy usage

He said this would depend on the specific situation and how cold the winter would be, where there were “regional supply bottlenecks” and on calculations about which industries were involved in different supply chains.

At the same time, Habeck stressed that “solidarity-based” and “very quick action” was necessary to avoid such a scenario.

Aid alliance with EU neighbours

In order to avoid caps on gas usage, the rapid expansion of renewable energy sources and the increase of energy efficiency “could be decisive components”, Habeck added.

At the meeting in Luxembourg, the EU energy ministers are discussing these two issues as parts of the EU’s planned “Fit for 55” climate package.

EU Energy Commissioner Kadri Simson, who is attending the meeting, said that 12 of the 27 member states – including Germany – are currently receiving less gas from the Russian energy company Gazprom. 

Though Gazprom has claimed that the reductions in gas supply to Germany are due to repairs on the Nord Stream 1 pipeline, Berlin has accused the Kremlin of using gas as a ‘weapon’ to punish allies of Ukraine. 

READ ALSO: ‘Scarce commodity’: Germany raises gas alert level as Russia reduces supply

In the event of a crisis this winter, the government said it would form an aid alliance with neighbouring countries such as the Czech Republic, Austria, Poland and also France.

“We would not make any progress at all if we could not fall back on France, Belgium, the Netherlands and Norway, who are supporting us,” said Habeck.

Algeria is also increasing the quantities of gas supplied via Italy.

“We are dependent on solidarity here,” said the Green politician.

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UKRAINE

German economy minister makes unexpected visit to Ukraine

German Vice Chancellor and Economy Minister Robert Habeck unexpectedly arrived in Kyiv on Thursday to discuss post-war reconstruction and show support after Russian attacks on key Ukrainian infrastructure.

German economy minister makes unexpected visit to Ukraine

“This visit comes at a time when Ukraine needs all the support it can get in its fight for freedom,” Habeck told reporters in the Ukrainian capital.

“And it is a fight for freedom, that’s the important thing that the world, Europe and Germany mustn’t forget,” he said, adding that Ukraine was “fighting for the values that define Europe”.

The trip comes after Germany at the weekend announced it was sending an additional Patriot air defence system to Ukraine after pleas from Kyiv for its Western backer to urgently help foil Russian attacks.

Ukraine has said it is running out of weaponry to shoot down Russian missiles and drones as Moscow ramps up attacks on energy infrastructure.

German Chancellor Olaf Scholz on Wednesday urged fellow EU leaders to urgently follow Berlin’s lead and send more air defence systems to Ukraine.

Habeck, who was accompanied by a business delegation on the trip, will hold talks with President Volodymyr Zelensky.

He will also meet with Ukrainian officials to discuss emergency aid and business ties as well as preparations for the annual Ukraine Recovery Conference to be held in Berlin in June, the German economy ministry said in a statement.

“Comprehensive support for Ukraine also includes support for a resilient energy supply and reconstruction. Private sector investment is crucial for this to succeed,” Habeck was quoted as saying in the statement.

The World Bank has estimated the total cost of reconstruction facing Ukraine more than two years since the start of the war is at least $486 billion.

OPINION: Germany’s timid strategy risks both Ukraine’s defeat and more war in Europe

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