Berlin unveiled the measures Sunday after Russia cut off gas supplies to Europe last week as it opposed European sanctions and military support for Ukraine. The steps, part of a broader strategy launched after the invasion of Ukraine, are aimed at reducing gas consumption and diverting gas deliveries to storage facilities to ensure the country has enough reserves to spend the winter. The gradual cut in gas supplies from Russia has created the spectrum of possible fuel shortages if Europe enters winter with less than full layers. It has also pushed up prices, putting additional pressure on economies already struggling with high inflation and rising borrowing costs and facing the prospect of recession. Nord Stream, the main channel for Russian fuel to Europe, reported a sharp drop in gas supplies. “Obviously, Putin’s strategy is to rattle us, to raise our prices and to divide us. We will not allow it. “We will defend ourselves resolutely, with precision and thoughtfulness,” said Robert Habek, Germany’s economy minister.

A gas storage facility in Germany. The gradual cut in supplies from Russia has raised the specter of possible fuel shortages.

          Photo: David Hecker / Getty Images

Gazprom blamed the shortage on the missing turbine components that were stuck in Canada due to sanctions. European officials and analysts have denied the allegations. Germany imports about 35% of its gas from Russia, up from 55% before the war, and uses most of it for heating and construction, according to German government estimates. Last year, natural gas production accounted for about 15% of total public electricity in Germany, Mr Habeck said, adding that the share of gas in electricity generation has probably fallen this year. To accelerate the reduction of gas in the energy mix, Mr. Habeck outlined a series of steps the government has taken to reduce its dependence on gas and set up storage facilities for the coming winter. Turning to a Green Party leader who has been campaigning to reduce fossil fuel use, Mr Habeck said the government would authorize utilities to expand the use of coal-fired power plants. This would ensure that Germany has an alternative energy source, but would further delay the country’s efforts to reduce carbon emissions. “This is bitter,” Mr Habeck said of the need to rely on coal. “But in this situation, it is necessary to reduce gas consumption. LPG stores must be full by winter. That’s the highest priority. “ Legislation affecting coal use is expected to be approved on July 8 in the Bundesrat, the upper house of parliament, Mr Habeck said. The measure expires on March 31, 2024, when the government hopes to have created a viable alternative to Russian gas. Mr Habeck also said the government would introduce an auction system that would encourage industry to reduce consumption. The government has not released details on how the auction will work, but Mr Habeck said it would start this summer. Mr Habeck said the new measures were aimed at diverting declining gas supplies from Russia to storage tanks to be used during the winter. Germany aims to have paid for 90% of its gas storage facilities by December. At present, Germany’s gas storage facilities are about 56% full, Mr Habeck said. The measures go beyond a variety of previously announced steps to reduce Germany’s dependence on Russian gas. According to earlier plans, the government could provide for industrial users in the event of a gas shortage in the winter. Rising oil costs have helped push the national average price for a gallon of gasoline to $ 5 for the first time, leading to rising inflationary pressures across the US economy. Photo illustration: Todd Johnson The government has made arrangements to purchase gas from non-Russian sources and is accelerating the construction of a liquefied natural gas terminal in the North Sea near Wilhelmshaven. Mr Habeck said two of the planned four special vessels for the liquefied natural gas conversion that could be supplied to the German grid would be put into operation this winter, allowing the country to replenish its gas supplies independently of Russia. Write to William Boston at [email protected] Copyright © 2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8