German Central Bank: Economy will decline by 3% in 2023 if Russian gas stops

Germany’s central bank, Bloomberg, has reported that the economy will decline by 3% in 2023 if Russian gas stops.

Germany has raised the alert level in its gas contingency plan in three phases, Thursday 23 June, due to a drop in Russian supplies.

As a result, Germany is preparing to move to the second tier of the contingency plan, in light of the high risks of a short-term gas supply, allowing utilities to charge high prices to industry and households, thereby reducing demand. .

At the end of March, Germany activated the first level of an emergency plan to deal with the lack of Russian gas supplies, which includes rigorous monitoring of daily flows and a focus on filling gas tanks.

The decision to move on to the next stage was at the studiosince Russia’s Gazprom has begun to reduce flows through the Nord Stream 1 pipeline to only 40%.

Germany is seeking to use the Nord Stream 2 pipeline to improve liquefied natural gas capacities, in light of the continuing deterioration in relations with Russia; The German government intends to convert parts of the Nord Stream 2 gas pipeline in a link to a liquefied natural gas station on the Baltic Sea coast, according to Reuters.

And on Thursday, German Economy Minister Robert Habeck said his country raised its gas alert level after Russia cut supplies.

He added that gas is now a rare commodity in Germany.

Germany will take emergency measures to secure its gas supplies in the face of reduced Russian deliveries, including increased use of coal, the government announced.

The Ministry of Economy said in an earlier statement: “To reduce gas consumption, less gas needs to be used to generate electricity. Consequently, coal-fired power plants will need to be used more.”

Russian state-owned Gazprom has reduced the flow of gas through the Nord Stream 1 pipeline across the Baltic Sea in recent days.

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