Russia’s move to reduce its supply of natural gas to Europe could disrupt the energy market, citing Germany’s collapse of Lehman Brothers, which led to the financial crisis, as an example.
Economic Minister Habeck pointed out on the 23rd that energy supply companies have to pay a high price to secure the supply, and the loss is swelling. He said there is a risk that this impact will spread to utilities in each region and their customers, such as companies and consumers. On the same day, Germany raised the level of domestic gas supply risk to the second “warning” from the top.
“If this loss becomes so great that energy suppliers can’t hold it, the entire market could collapse at some point,” Habeck said in an emergency press conference in Berlin. “That is the Lehman crisis in the energy system,” he continued.
Economic Minister Habeck explained at a press conference (Photo by TOBIAS SCHWARZ / AFP via Getty Images)
Photographer : Tobias SCHWARZ / AFP / Getty Images
Germany, Europe’s largest economy, faces an unprecedentedly harsh outlook for the depletion of energy for businesses and consumers. Russian President Vladimir Putin has opposed sanctions against the invasion of Ukraine and has gradually cut energy supplies in recent months in clear retaliation.
Conflicts further escalated last week as Russia drastically reduced the gas it supplies to Germany via its main gas pipeline. Germany is in jeopardy of having enough gas for the winter.
Raising the risk level of gas supply will restart several coal-fired power plants. The government will also be given the option of enacting a bill that would allow energy companies to pass on increased costs to households and businesses. Habeck said the situation is also a signal for Europe to cut energy consumption, and he said he plans to talk with other countries in the region over the next few days.
Original title:Germany Warns of Lehman-Like Contagion From Russian Gas Cuts (1)（抜粋）
