Germany Moves Closer to Gas Rationing

Following a drop in Russian supplies, Germany has moved one step closer to gas rationing. According to Germany's economy ministry, the country has activated the "alarm" stage of an emergency gas plan to deal with shortages. It is the latest development in a dispute between the European Union and Russia over Russia's invasion of Ukraine.

In response to EU sanctions, Russia is using gas "as a weapon," according to German Economy Minister Robert Habeck. "We must not fool ourselves. The cut in gas supplies is an economic attack on us by [Russian President Vladimir] Putin," Mr. Habeck said, adding Germans would have to reduce consumption.

Mr. Habeck stated that rationing gas for German industry would "hopefully never" be necessary, but added, "Of course, I can't rule it out." Germany has now reached the second stage of its three-part emergency plan, which is activated when there is a disruption or extremely high demand for gas.

The government will lend €15 billion (£13 billion) to try to fill gas storage facilities and will begin auctioning gas to the industry to encourage large businesses to use less. Moving to stage two of the plan increases the pressure on suppliers and network operators to mitigate disruption by taking steps such as finding alternative gas sources.