German Companies Receive Notice Due to Threat of Gas Rationing

According to German authorities, companies in Germany have been informed that gas supplies could be rationalized or even stopped altogether. This is due to the sanctions imposed by the EU against Russia because of the invasion of Russian troops in Ukraine.

This poses an unprecedented problem for German companies, because even during the Cold War, energy products such as gas were always supplied. Now this might soon no longer be the case because last week Russian President Putin announced that so-called “unfriendly” countries will have to make gas payments in rubles in the future. The EU countries are among others considered “unfriendly” countries.

A spokesman for the Federal Network Agency confirmed to the Berliner Zeitung that preparations for a crisis are currently being made with industry and the energy sector. If gas is cut off or rationed, German companies will no longer be able to produce, especially since companies are not protected customers under German energy law. Protected customers include private households and social institutions as well as important authorities.

“The reason for the talks is to prepare for unavoidable industry shutdowns in the event of a gas supply crisis. Household customers are subject to special legal protection in such a situation and are given priority supply,”

a spokesperson from the Federal Network Agency said.

The companies, on the other hand, are kept on a list and switched off in order of ranking.

In addition, diesel is also threatening to become scarce soon. Again, rationing may become necessary, but the problem could be a global one. Sanctions have cut off up to 3 million barrels of Russian crude oil a day from the global market. But again, Europe would likely be the hardest hit, as Europe imports nearly 1 million barrels of diesel a day from Russia. To make matters worse, inventories were already tight even before the crisis.

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