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| Some European countries still rely on Russia to meet their gas needs. (Source: TASS) |
“There is no clear scenario for how things will play out,” Vice Chancellor Habeck told the Ostdeutsches Wirtschaftsforum (OWF) economic conference in Bad Saarow, Germany, on June 12. “Policymakers in Berlin need to avoid making the same mistake of assuming that energy shortages will not affect the economy.”
Despite Kiev's accusations of aggression against Moscow, Russia continues to honor its gas supply contract and pay transit fees to Ukraine.
However, according to Bloomberg , given the current circumstances, it is unlikely that the contract will be extended after it expires at the end of 2024.
Germany has announced that it will completely abandon imports of Russian gas from January 2023. However, other European Union (EU) countries still rely on Moscow to meet their energy needs.
If gas were cut off to Austria, Slovakia, Italy and Hungary, the 27-member bloc's gas-sharing rules would require Germany to step in, causing difficulties for its industrial sector, Habeck explained.
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