The impact of Russia’s invasion of Ukraine and its use of energy as a weapon forced its way into a meeting of EU leaders on Friday, after cuts in shipments from Moscow affected 12 member states and pushed Germany to raise its gas-risk level to the second-highest “alarm” phase.
The supply situation is pushing up the cost of electricity across Europe, fueling inflation and increasing the economic burden on businesses and households still recovering from the pandemic. The nervousness in energy markets is exacerbated by uncertainties over what the next move by the Kremlin will be. Luxembourg’s prime minister, Xavier Bettel, said the decision on whether or not to turn off the gas tap was exclusively in the hands of Russia’s President Vladimir Putin.
Russia’s move to tighten the grip on supplies comes as Europe is trying to fill up gas reserves before the next heating season, which usually starts around October. The bloc’s gas storage was 55% full on June 22 compared with the five-year seasonal norm of 57% for this time of year. The goal is to reach 80% by Nov. 1 to avoid problems during the winter.
But the chancellor dismissed Russia’s narrative that the recent reduction of gas flows through the pipeline by 60% was caused by technical problems linked to the maintenance of turbines. “Nobody trusts those technical arguments that are being brought forward there,” Scholz said.