Anonymous ID: d87356 July 28, 2022, 7:07 a.m. No.16910652   🗄️.is 🔗kun

https://english.almayadeen.net/news/economics/germany-to-face-high-costs-as-russia-imposes-sanctions

 

Germany to face high costs as Russia imposes sanctions

 

German taxpayers and gas users could face an increased cost, approximately €5 billion ($5.4 billion), since Russia imposed sanctions against Gazprom Germania and its subsidiaries, the Welt am Sonntag weekly reported, citing industry representatives.

 

Last month, in May, Russia stopped supplying Gazprom Germania the German subsidiary of Gazprom. The decision came after Berlin put the company under trustee management following the Ukraine war.

 

As a result, the Bundesnetzagentur energy regulator, acting as a trustee, had bought replacement gas to fulfill supply contracts with German municipal utilities and regional suppliers.

 

The Economic ministry spokesperson estimated that an extra 10 million cubic meters per day are required to fulfill the needs of the market. The spokesperson further added, in an email response, that "the quantities are procured on the market and at market prices. No information can be given on the exact amounts due to commercial confidentiality."

 

The cost, currently about €3.5 billion ($3.7 billion) a year, could increase as further costs are likely to arise from the filling of the Rehden natural gas storage facility as ordered by Robert Habeck, the Economy Minister.

 

Moreover, the Welt am Sonntag report stated that costs are likely to reach consumers as they will be passed down to them through energy suppliers. This could start impacting consumers as early as October.

 

One thing that is definitively confirmed by the ministry’s spokesperson, is that energy supplies are not at risk.