German Chancellor Olaf Scholz said on Tuesday that his country is well-prepared to tackle a possible energy shortage because of Russia's squeeze on European gas supplies, even as fears grow about the juggernaut of rising prices that will likely hit consumers across the continent this winter.
Scholz spoke at the start of a two-day government retreat, attended also by Spanish Prime Minister Pedro Sánchez, which will focus on the impacts of Russia's invasion of Ukraine on the energy supply in Europe.
Scholz cited Germany's decisions to reactivate oil and coal-fired power plants, mandate the filling of natural gas storage facilities and lease floating liquefied natural gas terminals.
A decision on extending the operating life of Germany's three remaining nuclear power plants is also expected soon.
“All of this and many further measures have contributed to us being in a much better situation as far as supply security is concerned than could have been foreseen a couple of months ago,” Scholz told reporters at the government's guest house in Meseberg, north of Berlin.
“We will be able to cope quite well with the threats that we face from Russia, which is using gas as part of its strategy in the war against Ukraine.”
Scholz noted that gas storage facilities are already over 80 per cent full, more than they were at this time last year, and the government is expected to agree on a further package of measures in the coming days to help German consumers cope with steeply rising energy prices.
Russia's state-controlled energy company Gazprom further reduced gas deliveries to the French company Engie, raising fears that Moscow might cut off gas completely as political leverage over the war in Ukraine.
Gazprom informed Engie of a reduction in gas deliveries, starting on Tuesday, because of “a disagreement between the parties on the application of several contracts,” according to the statement from the French energy company.
Deliveries for Engie from Gazprom have significantly decreased since Russia invaded Ukraine on February 24.
