Germany on 'gas alarm', sees long-term supply shortages: Report

Europe’s biggest buyer of Russian gas is bracing for a further drop in supply next month when a key pipeline shuts for maintenance – and fears the link may never return to full capacity.

The Nord Stream pipe, already operating at just 40 per cent of normal levels, will be offline for works on July 11-21, tightening a market that’s seen prices soar in recent weeks. That means less gas will be available to pump into storage, jeopardising German efforts to replenish essential stockpiles ahead of winter.

“The interruption of Nord Stream 1 will test the market’s ability to continue storing gas” amid much lower Russian flows, said Sebastian Bleschke, head of INES, the association of German storage operators. 

While the country’s gas inventories are about 58 per cent full – close to the seasonal average – Economy Minister Robert Habeck said the drop in flows through Nord Stream makes it difficult to meet a November target of 90 per cent.

Path to EU candidacy close for Ukraine

Ukraine is set to be accepted as a candidate to join the European Union on Thursday, a move that boosts the country's morale as Russian assaults wear down the defenders of two cities in the eastern Donbas region.

Nike walks out of Russia

Nike is making a full exit from Russia three months after suspending its operations there, the US sportswear maker told Reuters on Thursday, as the pace of Western companies leaving the country accelerates.

On Thursday, it joined other major Western brands, like McDonald’s and Renault, in confirming it will leave the country completely.

Rouble’s recovery

The Russian rouble weakened against the dollar on Thursday but hovered not far from seven-year highs, supported by capital controls and the prospect of a favourable upcoming tax payment period as the spectre of a possible default loomed large.

UK slaps more trade sanctions against Russia

Britain introduced a new tranche of trade sanctions against Russia on Thursday, a notice published on the government website said.

The new measures including prohibitions on the export to Russia of a range of goods and technology, the export of jet fuel.

Germany’s 3-stage emergency gas plan

Early Warning Phase: 

• This stage is triggered when there are ‘concrete, serious and reliable indications that an event may occur which is likely to lead to a significant deterioration of the gas supply situation and probably to the alarm or emergency level.’ Gas companies continue to ensure supplies, there are no supply disruptions yet

• Gas suppliers advise the government and are part of the crisis team

• The government immediately informs the European Commission about potential further measures

Alarm Phase:

• This stage is triggered when there ‘is a disruption in the gas supply or an exceptionally high demand for gas which leads to a significant deterioration of the gas supply situation, but the market is still able to cope with this disruption or demand without the need to take non-market based measures’

• There are no changes compared with the first phase, but all market players are under more pressure to balance out disruptions

Emergency Phase:

• This stage is triggered when there "is an exceptionally high demand for gas, a significant disruption in gas supplies or another significant supply situation and all relevant market-based measures have been implemented, but gas supply is insufficient to meet the remaining demand so that non-market based measures need to be taken

• State intervention kicks in 

• Supply to industry is curtailed first, while households and critical institutions continue to receive gas