Germany issues ‘early warning’ of possible gas shortages as Russia threatens

The European Union depends on Russia for about 40% of its natural gas, and Germany is Moscow’s biggest energy customer on the continent. EU sanctions imposed on Russia over its invasion of Ukraine include a ban on new investment in energy projects but do not target oil and gas exports.

Habeck said this week that payment in rubles is not acceptable to Berlin — a position backed by other G7 economies — and he has described Russian President Vladimir Putin’s demand as “blackmail.”

Putin has given Russia’s central bank and Gazprom, the state gas company, until Thursday to come up with proposals for accepting payments in rubles, rather than US dollars or euros as agreed in supply contracts.

With the sanctioned Russian central bank banned from swapping euros and dollars for rubles, Moscow is trying to find a new stream of cash it can spend easily.

Putin could “directly finance the war, the army, the supply of the soldiers, the supply of gasoline for the tanks and the construction of weapons in his own country” with rubles, Habeck said Monday.

The “early warning” is the first of three alert levels set out in Germany’s emergency gas plan. If the situation deteriorates, the government would declare an “alarm,” followed by an “emergency.”

Habeck said a crisis team of experts from government, regulators, gas network operators and Germany’s 16 federal states had been convened to monitor the situation closely and take measures “to increase supply security” if necessary.

— Charles Riley and Chris Stern contributed reporting.