—The Russia-owned gas pipeline is not in use after Berlin vowed not to make it operational due to the war in Ukraine.

—The potential plans come as Europe faces an energy crisis after Russia began reducing gas supplies.

Germany is reportedly considering seizing parts of the Nord Stream 2 pipeline to allocate for a liquefied natural gas terminal as Europe reels from an energy crisis.

Der Spiegel reported Friday that the economy ministry has discussed expropriating portions of the Russian-owned gas pipeline in German territory, according to Reuters.

The pieces would then be cut off from the rest of the pipeline and repurposed in an LNG terminal on the Baltic Sea. Europe has increasingly turned to LNG imports, especially from the US, as it looks for alternatives to Russian supplies.

Russia’s state-run energy giant Gazprom completed construction of the Nord Stream 2 at the end of 2021 but it has yet to be used. Germany vowed not to let it go into operation after Russia invaded Ukraine.

The potential pipeline seizure comes as Europe faces an energy crisis. Russia has slashed gas flows from a separate pipeline, Nord Stream 1, in recent weeks just as European countries build up inventories ahead of the winter season.

Energy storage in Europe is roughly half full, and the EU is worried that a harsh winter coupled with an already frustrated supply chain for energy will lead to shortages.

On Thursday, German Economy Minister Robert Habeck declared the country is now in the “alarm” phase of its gas emergency plan, signaling that businesses and households need to cut down on consumption and that the government foresees long-term risk of supply shortfalls.

International Energy Agency chief Fatih Birol told the Financial Times earlier this week that Europe should prepare for a complete cut-off in Russian gas exports.

Source: https://www.yahoo.com/entertainment/germany-considers-seizing-parts-russian-162450590.html

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Leaders of the European Union’s 27 member states are meeting for the second day of a summit on Friday to address the bloc’s inflation-hit economy.

The first day of the summit ended on a high note. The leaders agreed in Brussels on granting Ukraine and Moldova official status as candidates for EU membership — a move hailed by European Commission President Ursula von der Leyen as “historic.”

But the display of support for Kyiv comes amid wider economic consequences of Russia’s war on Ukraine.

Russia blamed for economic woes
A spike in inflation and lagging economic growth across the world has been blamed on Russia’s invasion of Ukraine. The West also accuses Moscow of “weaponizing” grain supplies and natural gas deliveries.

On Thursday, the European Commission said gas supply cuts from Russia affected a dozen EU countries. Germany, which is heavily reliant on Russian gas, triggered the second phase of an emergency gas plan.

The squeeze of Russian oil is pressuring the EU to find alternatives to prevent an energy crisis.

Germany running into gas supply issues is likely to have EU-wide repercussions, Belgium’s Prime Minister Alexander De Croo warned ahead of Friday’s meeting.

“If Germany gets into trouble, it will also have an enormous impact on all other European countries, including our own,” he said.

Christine Lagarde, president of the European Central Bank (ECB), is joining the EU leaders on Friday to address growing inflation and soaring prices.

According to the EU stats agency Eurostat, inflation in the 19-country eurozone is at a record high of 8.1%.

The ECB has pledged to raise interest rates in July — for the first time in more than a decade — in a bid to curb inflation.

The European Commission also cut its economic growth forecast for this year from 4% that had been expected before the war in Ukraine to 2.7%.

fb/kb (dpa, Reuters)

Source: https://www.dw.com/en/eu-leaders-talk-economy-as-russia-slashes-gas-supplies/a-62243088

The post EU leaders talk economy as Russia slashes gas supplies first appeared on Garner Ted Armstrong Evangelistic Association.

BERLIN, June 23 (Reuters) – Germany triggered the “alarm stage” of its emergency gas plan on Thursday in response to falling Russian supplies but stopped short of allowing utilities to pass on soaring energy costs to customers in Europe’s largest economy.

The measure is the latest escalation in a standoff between Europe and Moscow since the Russian invasion of Ukraine that has exposed the bloc’s dependence on Russian gas supplies and sparked a frantic search for alternative energy sources.

The step is a largely symbolic signal to companies and households but marks a major shift for Germany, which cultivated strong energy ties with Moscow stretching back to the Cold War.

Lower gas flows sparked warnings this week that Germany could fall into recession if Russian supplies halted altogether. A survey on Thursday showed the economy losing momentum in the second quarter. read more

“We must not fool ourselves: The cut in gas supplies is an economic attack on us by (Russian President Vladimir) Putin,” Economy Minister Robert Habeck said in a statement.

Gas rationing would hopefully be avoided but cannot be ruled out, Habeck said:

“From now on, gas is a scarce commodity in Germany … We are therefore now obliged to reduce gas consumption, now already in summer.”

Russia has denied the supply cuts were deliberate, with state supplier Gazprom (GAZP.MM) blaming a delay in the return of serviced equipment caused by Western sanctions. The Kremlin on Thursday said Russia “strictly fulfils all its obligations” to Europe.

The step is a largely symbolic signal to companies and households but marks a major shift for Germany, which cultivated strong energy ties with Moscow stretching back to the Cold War.

Lower gas flows sparked warnings this week that Germany could fall into recession if Russian supplies halted altogether. A survey on Thursday showed the economy losing momentum in the second quarter.

“We must not fool ourselves: The cut in gas supplies is an economic attack on us by (Russian President Vladimir) Putin,” Economy Minister Robert Habeck said in a statement.

Gas rationing would hopefully be avoided but cannot be ruled out, Habeck said:

“From now on, gas is a scarce commodity in Germany … We are therefore now obliged to reduce gas consumption, now already in summer.”

Russia has denied the supply cuts were deliberate, with state supplier Gazprom (GAZP.MM) blaming a delay in the return of serviced equipment caused by Western sanctions. The Kremlin on Thursday said Russia “strictly fulfils all its obligations” to Europe.

Berlin will provide a 15 billion euro ($15.76 billion) credit line to fill gas storage and launch a gas auction model this summer to encourage industrial users to save gas.

The second “alarm stage” of a three-stage emergency plan means authorities see a high risk of long-term supply shortages. It includes a clause allowing utilities to immediately pass on high prices to industry and households.

Habeck said Germany was not at that point, but the clause might get triggered if the supply squeeze and price gains persisted, pushing power companies deeper into the red.

“If this minus becomes so big that the companies can’t bear it any more and they fall down, the whole market threatens to fall down at some point – so a Lehman Brothers effect in the energy system,” he said, referring to the U.S. investment bank’s 2008 collapse that rippled through global financial markets.

Local utility association VKU asked the government to protect consumers with subsidies or risk utilities going bust because of low-income retail customers defaulting on payments.

The President of the Federal Network Agency, Klaus Mueller, believed it was possible for consumer prices for gas to triple.

“If you extrapolate it, it depends a lot on how you heat, how your building is built, but it can triple the previous gas bill,” he told RTL/ntv broadcasters.

The move to Phase 2 had been anticipated since Gazprom cut flows via the Nord Stream 1 pipeline across the Baltic Sea to just 40% of capacity last week.

Data released on Thursday showed Germany has imported 22% less natural gas in the first four months of 2022 but the cost surged 170% over the same period.

Facing dwindling deliveries from main supplier Russia, Germany has since late March been at Phase 1, which includes stricter monitoring of daily flows and a focus on filling gas storage facilities.

“The declaration of the alarm stage does not immediately change the fundamental status quo,” German energy provider E.ON (EONGn.DE) said. It was important, though, that the government was preparing and taking steps to stabilize markets and gas supply, it said an emailed statement to Reuters. read more

RISK OF FULL DISRUPTION
In the second stage, the market is still able to function without the need for state intervention that would kick in the final emergency stage.

Nord Stream 1 is due to undergo maintenance on July 11-21 when flows will stop. Hanns Koenig of consultancy Aurora Energy Services in Berlin said Gazprom might find reasons to drag out the process.

“Extended maintenance of Nord Stream 1 would further tighten the market and make it harder to fill gas storage until winter. This is of course in Russia’s strategic interest.”

Russia may cut off gas to Europe entirely to bolster its political leverage, the head of the International Energy Agency (IEA) warned on Wednesday, urging Europe to prepare now.

Russian gas flows to Europe via Nord Stream 1 and through Ukraine were stable on Thursday, while reverse flows on the Yamal pipeline edged up, operator data showed.

Dutch wholesale gas prices, the European benchmark, rose as much as 8% on Thursday.

Several countries have outlined measures to withstand a supply squeeze and avert winter energy shortages and an inflation spike that could test Europe’s resolve to maintain sanctions on Russia.

Supply cuts have driven German companies to contemplate painful production cuts and resorting to polluting energy sources previously considered unthinkable. read more

The European Union and Norway unveiled a deal on Thursday allowing the bloc to tap more gas from western Europe’s biggest producer.

The EU also signaled a temporary return to coal to plug the gap after calling Moscow’s gas supply cuts “rogue moves.”

Its climate policy chief Frans Timmermans said 10 of the EU’s 27 member countries have issued an “early warning” on gas supply – the first of three crisis levels.

“The risk of full gas disruption is now more real than ever before,” he said.

Reporting by Holger Hansen, Christoph Steitz, Christian Kraemer, Vera Eckert, Tom Sims, Marwa Rashad, Kate Abnett, Nora Buli, Tom Käckenhoff, Paul Carrel, Miranda Murray and Riham Alkousaa; writing by Matthias Williams Editing by Tomasz Janowski, Elaine Hardcastle

Our Standards: The Thomson Reuters Trust Principles.

Source: https://www.reuters.com/world/europe/germany-enter-phase-2-emergency-gas-plan-says-source-2022-06-23/

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The European Union has approved the participation of NATO members the United States, Canada, and Norway in a project aimed at speeding up the movement of troops and military equipment around Europe.

The May 6 decision marks the first time the EU has opened up an initiative from its Permanent Structured Cooperation (PESCO) pact, which aims to deepen defense ties, to outside partners.

The pact was agreed by EU leaders in December 2017 amid heightened tensions between the West and Moscow over Russia’s aggression in Ukraine.Moscow annexed the Ukrainian peninsula of Crimea in March 2014 and has been backing separatists in eastern Ukraine in a war that has killed more than 13,000 people since April 2014.

The bloc has since earmarked 1.7 billion euros ($2 billion) from its joint budget until 2028 to improve so-called military mobility, something NATO deems as crucial in the event of a conflict with Russia.

Beyond border red tape, the smooth deployment of forces whether by land, sea, or air is also often hindered by ill-adapted infrastructure.

At their first in-person meeting in more than a year in Brussels, the 27 EU defense ministers discussed Russia’s recent military buildup in annexed Crimea and on the Ukrainian border.

“The debate reaffirmed the EU’s position that Russia must de-escalate and reduce tensions,” and that the full implementation of the Minsk agreements aimed at putting an end to the fighting in eastern Ukraine “is key to a lasting political solution,” according to a statement.

The ministers also gave the greenlight for the United States, Canada, and Norway to join the bloc’s military mobility project, led by the Netherlands.

The three countries’ “expertise will contribute to the project and, with it, to improving military mobility within and beyond the EU,” the bloc’s foreign policy chief and meeting chairman, Josep Borrell, said in a statement.

“It will make EU defense more efficient and contribute to strengthen our security.”

German Defense Minister Annegret Kramp-Karrenbauer hailed the move as a “quantum leap in concrete cooperation when it comes to ensuring that troops can be deployed in Europe across national borders.”

“Talking about military mobility, making sure that troops can be moved across borders within Europe is a very important issue not only for the European Union but also for NATO,” she added.

NATO Secretary-General Jens Stoltenberg, who met with the EU ministers, also welcomed the move, and noted that “non-EU allies play an essential role in protecting and defending Europe.”

The United States and its NATO allies have enhanced their presence in the eastern part of the alliance, in part to help reassure Estonia, Latvia, Lithuania, and Poland that they will be defended in case of any Russian aggression.

Canada is leading a NATO battlegroup stationed in Latvia, and non-EU member Norway is involved, too.

A reminder of the continued tensions in the region came on May 6 when Estonia filed a protest with Moscow a day after a Russian aircraft allegedly violated its airspace for the second time this year.

The military said an IL-96 plane belonging to Russia spent about one minute in Estonian airspace near the Baltic Sea island of Vaindloo in what the Foreign Ministry called “a serious incident.”

The crew did not present a flight plan and failed to maintain radio contact with Estonian Air Navigation Services, the military and officials said.

Moscow said it disputes Tallin’s characterization of the facts.

EU defense ministers also discussed on May 6 a project to set up a 5,000-strong military force that could be deployed quickly to a potential conflict zone. The plan has the backing of 14 member countries, including France, Germany, Italy, and Spain.

With reporting by Reuters, AFP, and AP

Source: https://www.rferl.org/a/russia-eu-nato-allies-military-mobility-borrell-stoltenberg/31241378.html

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