Germany Raises Emergency Supply Alert Level Due to Russia's Reduced Gas Supply

by Jeong Hyunjin

Published 23 Jun.2022 17:22(KST)

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Germany has upgraded its gas emergency supply plan from the first stage of early warning to the second stage of alert in response to Russia's reduction of gas supply.

According to Bloomberg on the 23rd (local time), Robert Habeck, Germany's Vice Chancellor and Minister for Economic Affairs and Climate Action, announced in a statement that the gas emergency supply plan alert would be raised from the current first stage of early warning to the second stage of alert.

Germany's energy emergency supply plan alert consists of three stages: early warning, alert, and emergency. The upgrade to the second stage of alert means the situation is becoming more urgent. The German government had previously issued the first stage early warning of the gas emergency supply plan on March 30.

At the time of issuing the first stage early warning, there was a need to prepare for the possibility of gas supply being cut off as Russia insisted on receiving gas payments in its own currency, the ruble, starting the next day. This time, the measure was taken following Russia's 60% reduction in gas supply through Nord Stream 1, which runs through the Baltic Sea to Germany, starting from the 16th.

If the emergency supply plan alert is finally raised to the third stage of emergency, the state will intervene directly. In this case, the Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railway will have the authority to allocate gas to industries. Households, hospitals, and safety personnel are excluded from this management.

Vice Chancellor Habeck said, "The path we must take as a nation will be a difficult one," adding, "Although we do not feel it yet, we are in a gas crisis." He also noted that Europe's largest economy must prepare for Russia's reduction in gas supply.