Germany and Austria have moved a step closer to rationing natural gas usage in their countries, as a way of allowing them to cope with possible future Russian actions.
Both nations, and a host of other European countries, rely on Russian natural gas in order to keep their economies running smoothly. However, the tensions between European states and Russia are at an all-time high following the brutal Russian invasion of Ukraine last month. There are now fears that Russia may cut off gas supplies to Europe as punishment for supplying Ukraine with weapons and for imposing massive sanctions on Russian financial and political institutions.
Russia has already stated that from this week, all payments from European countries for their gas must be made in the form of Russian roubles, something that G7 nations have rejected.
The EU plans to cut its reliance on Russian gas by 66% by the end of the year, however, this will both be costly and cumbersome.
There is even a fear that Russia, as an act of desperation amidst its stumbling war in Ukraine, that it will cut gas supplies completely in order to pressure the nations of Europe.
Robert Habeck, Germany's economy minister, has said that Europe's largest economy has already implemented an 'early warning phase' of gas rationing. In a statement, he said:
"There are currently no supply shortages. Nevertheless, we must increase precautionary measures in order to be prepared in the event of an escalation on the part of Russia. With the declaration of the early warning level, a crisis team has convened."
German stocks and shares fell on the back of the announcement.
As a solution to the crisis, European states have been opening talks with other gas and energy suppliers about increasing gas imports and moving more quickly towards green and renewable energy.
Frans Timmermans, the EU climate policy chief, said of the situation:
"We will of course, work closely with member states to have everybody be prepared for any sort of situations. We as a commission have been preparing for a very long time."
Currently Russia supplies around 40% of Germany's gas needs. If this was shut off entirely, a major economic downturn could be expected that would reverberate around the continent and the wider global economy.
[Based on reporting by: The Guardian]
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