German vice chancellor calls for users to ration gas as Russia cuts supply

Germany’s vice chancellor is stepping up an appeal for the country’s residents to save energy after Russia’s Gazprom announced significant cuts in natural gas deliveries through a key pipeline.

State-owned Gazprom announced on Tuesday that it was cutting gas flows through the undersea Nord Stream 1 pipeline to Germany by 40%, then, a day later, announced a further cut that brings the overall reduction to about 60%.

In both cases, it cited a technical problem, saying that Canadian sanctions over the war in Ukraine prevented German partner Siemens Energy from delivering equipment that had been sent for overhaul.

The German government rejected that reasoning, saying that maintenance should not have been an issue until the autumn and the Russian decision was a political gambit to sow uncertainty and push up prices.

He pointed to earlier Russian moves to cut supplies to Bulgaria, Denmark and others.

The reduction in gas flows comes as Germany and the rest of Europe try to reduce their dependence on Russian energy imports. Germany, which has Europe’s biggest economy, gets about 35% of its gas to power industry and generate electricity from Russia.

The news of the reductions sent short-term natural gas prices sharply higher in Europe. Month-ahead spot prices rose 13% Thursday to 139.10 euros (£118) per kilowatt hour, up 40% since Monday.

Habeck, who is also the economy minister, already had launched a campaign for people to save energy last week. After the Gazprom announcements, he hammered home the message in Wednesday night’s video.

“Gas is coming to Europe — we have no supply problem, but the volumes of gas must be acquired on the market and it will get more expensive,” Habeck said.

He said the government is prepared, and noted that it has enacted legislation requiring gas storage to be filled.

He lauded the willingness of Germans and business to save energy and store gas.

“Now is the time to do so,” he said. “Every kilowatt hour helps in this situation. It is a situation that is serious, but not a situation that endangers supply security in Germany.”