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Germany warned of a natural gas emergency on Wednesday amid threats of supply disruptions from Russia.
German Economic Minister Robert Habeck said the country has declared an “early warning” measure, the first of three stages of a contingency plan. The plan aims at protecting Europe’s largest economy from any possible reduction in Russian gas deliveries.
The Russian government demanded countries to pay in rubles for gas exports. Most countries deal with Russia for its gas exports in dollars and euros.
G-7 countries, including Germany, had turned down Russia’s demand.
“We are in a situation where I have to say clearly that every kilowatt-hour of energy saved helps. That is why I would like to combine the triggering of the early warning level for gas supplies with an appeal for help to companies and private consumers,” Habeck said.
“You are helping Germany, you are helping Ukraine, when you reduce your use of gas or energy in general.”
Habeck urged consumers and companies to reduce consumption. He added that Germany would not be able to get rid of Russian oil before mid-2024.
European benchmark for natural gas trading Dutch TTF hub traded up over 11% at 120.5 euros ($134) per megawatt-hour on Wednesday.
Germany imported around 55% of its gas supplies from Russia last year, while the European Union gets 40% of its gas from Russia.
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