Germany to enter Phase 2 of emergency gas plan after Russia slashes supply

Amid the ongoing Russia-Ukraine war, Germany has decided to enter Phase 2 of its three-stage emergency gas plan. On Thursday, Economy Minister Robert Habeck announced that the country would enter this phase of the initiative formed to tackle the gas crisis. Notably, this development comes at a time Russia, Germany's top gas supplier, has reduced fuel supply over tensions with the West on the invasion of Ukraine. Germany sees the reduction in gas supplies as an economic attack by Russian President Vladimir Putin, said Habeck in a statement.

In a bid to prevent long-term supply shortages, Germany has introduced the Phase 2 gas plan. Under this, the price of gas will be increased, thus helping lower demand. The Phase 2 Gas Emergency Plan is required for the government's plan to build more coal-fired power plants to avoid the use of gas in electricity production. According to reports, private households would receive gas for a longer duration, while industry would face shortages. However, hospitals, inpatient care facilities, and facilities for the care and support of disabled people, as well as the fire department, police, and armed forces, would be given as much gas as possible.

Reduction in gas supplies is an 'economic attack' by Russia: Robert Habeck

“The situation is serious, and winter will come,” Habeck said in a statement. “The reduction in gas supplies is an economic attack on us by Russian President Vladimir Putin. We will defend ourselves against this. But our country is going to have to go down a stony path now,” he added.

Last week, Russian supplier Gazprom cut flows via the Nord Stream 1 pipeline, a move that Germany has called politically motivated. Russia's supply cuts have affected as many as 12 European countries, and the risk of a full gas disruption is likely to increase. However, the Russian gas exporter Gazprom PJSC has claimed that the slash in supply was only due to a technical problem. 

Habeck stated that Russia's decision to reduce the gas supply in the name of the technical problem is nothing but an "economic attack." He said the Kremlin wanted to create uncertainty, increase prices, and create a divide among European states. This comes at a time Germany aims to fill gas-storage facilities, which are currently about 59% full. On the other hand, energy companies have been asked to fill stocks to try to reach a government-mandated target of 90% capacity by November.