(Dan Tri) – European countries are trying to prepare for the scenario of Russia cutting off gas supplies to limit negative impacts on the economy as well as social life.
European Commission President Ursula von der Leyen (Photo: Reuters).
Russia began to use the `card` to cut off gas supplies to Europe after warning to stop supplying gas to `unfriendly` countries and not paying in rubles.
The move marks a significant escalation in economic tensions between Russia and the West and is perhaps Moscow’s strongest response to Western sanctions since Russia launched its military campaign in
European Commission President Ursula von der Leyen said that cutting off Russia’s gas supply is no different from `blackmail`.
However, the question is, Europe can help Poland and Bulgaria cope, but if Russia cuts gas supplies to other EU countries, especially Germany and Italy, what will happen.
Is Europe ready for an energy crisis?
A worker adjusts the valve of Gazprom’s gas pipeline in Russia (Photo: Bloomberg).
According to the European Commission, the EU depends on 45% of gas imports from Russia.
The EU quickly found alternative sources of supply, reducing dependence on Russia.
`Russia’s latest move once again reminds us of the need to look for reliable, energy independent partners,` Ms. Leyen emphasized.
Poland has anticipated the scenario of Russia stopping gas supplies.
Carsten Fritsch, an expert at Commerzbank’s commodity market analysis department, commented that Poland’s preparation partly explains why the market was not too panicked with the information that Russia cut off gas supply.
Gas futures prices in the European market increased by 24% at the beginning of the trading session on April 27, but have since decreased to a level only slightly higher than the average price in April. Bulgaria depends on supply
On the contrary, for Germany, it would be a big problem if the gas supply was suddenly cut off.
According to experts, if Germany’s main energy supply is interrupted, it could lead to production and export cuts and threaten the existence of small and medium-sized manufacturing enterprises in the country.
The German central bank estimated last week that if gas supply is cut off, the German economy is at risk of a deep recession, GDP could decrease by 6.5% this year and next year, the domestic market could lose about
Last month, the German government launched a three-phase emergency plan, which prioritizes gas use for hospitals and households over businesses.
Henning Gloystein, Director of Energy and Climate and Resources at Eurasia Group, said Germany and Italy could still avoid consumption cuts if they acted quickly.
