FT News Briefing Russia squeezes Germany over gas
Mar 31, 2022
Tensions rise as Russia threatens gas supply to Germany, demanding payments in rubles. The looming gas crisis could push Germany into recession amid soaring inflation. Journalist Catherine Belton discusses how sanctions impact Russian oligarchs, affecting their influence and Putin's authority. The precarious financial future is unfolding, highlighting the intricate web of politics, energy, and economic stability in Europe.
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Ruble Payment Power Play
- Russia demands ruble payments for gas, nominally due to contract terms.
- The real reason is a power play to boost the ruble and circumvent sanctions.
Russia's Economic Muscle
- Russia's gas delivery threat is a show of economic strength against Europe's sanctions.
- This reminds Europe of its dependence on Russian gas, oil, and coal.
Gas Rationing Impact
- Halting gas deliveries could severely impact the European economy, particularly Germany's industrial sector.
- Germany and Austria are already preparing for potential gas rationing.
