May 12, 2022

Germany warns of increase in gas prices due to Russia’s retaliatory sanctions

By Azlyrics

Russia approved the sanctions list, which included the former “daughters” of “Gazprom”. According to the head of the Ministry of Economy of Germany, due to sanctions, Germany will be forced to conclude new contracts for the supply of gas, possibly at a higher price

Russian retaliatory sanctions against Gazprom Germania GmbH and its subsidiaries mean the need to conclude new contracts, possibly at higher prices, said the Vice-Chancellor of Germany, Minister for Economic Affairs and Climate Protection Robert Habeck in the Bundestag, reports FAZ.

“Inclusion in the sanctions lists” subsidiaries ” Gazprom Germania means they have to re-conclude supply contracts. These contracts will probably be awarded at higher prices,— said the deputy head of government.

According to Habek, Russia's sanctions deprived Germany of 10 million cubic meters. m of gas per day, but the German government has already developed a plan to replace supplies.

RBC sent a request to a representative of Gazprom.

In early May, Russian President Vladimir Putin signed a decree on Russia's response to the sanctions. The document says that they are introduced in order to protect the national interests of the country and in response to unfriendly and contrary to international law actions of the United States and its affiliated states aimed at “illegal deprivation” of or restriction of property rights to Russia, Russians and Russian legal entities.

On May 11, the Russian government approved a list of foreign companies subject to retaliatory Russian sanctions. The list includes former Western subsidiaries; Gazprom, including Gazprom Germania. This company manages the former European assets of Gazprom, which are also included in the sanctions list: Gazprom NGV Europe, Wingas, Astora, Gazprom Marketing & Trading, Vemex and others.

It is forbidden to make transactions with sub-sanctioned enterprises, including those that involve the entry into Russian ports of ships associated with these legal entities, as well as making payments and transactions with securities in favor of these companies.

Read on RBC Pro Pro What is a manager made of, or What to do when everyone is looking at you? Summary Pro “Already abroad, but I can recommend a friend”: how to contain the outflow in IT Instructions Pro Gas supplies to the EU are falling. What will happen to Gazprom shares Forecasts Pro x The Economist Why economists and ordinary people estimate inflation differently hours 6 days a week. How it is to open a business in China Instructions Pro Defective – to the exit: which managers will survive in the next two years Gazprom Germania GmbH stopped receiving gas due to retaliatory sanctions. According to him, the German power engineers are monitoring the situation and have prepared in advance. “The market can compensate for the lack of supplies from Russia”, — the minister clarified.

At the end of March, Germany introduced the first of three levels of emergency warning regime in gas supply. It involves the maximum reduction in consumption and monitoring the situation on the gas market.

The first level of the emergency prevention regime is introduced if there are signs of a future deterioration in the gas supply situation. If they are implemented, a second level is introduced. The third is announced in case of a significant disruption of gas supply. In this case, the government takes measures to provide gas to citizens, hospitals, fire services and the police.

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