Energy tensions ramped up when Russia imposed sanctions Wednesday on Gazprom Germania, a subsidiary of the Russian supplier that the German government took control of in April.
German Vice Chancellor Robert Habeck said the loss of gas from the Russian moves was “manageable” at around 10 million cubic meters per day and could be made up from other sources.
The actions further roiled volatile energy markets. Natural gas traded Friday at 104 euros per megawatt hour, up from 94 euros before the announcements.
“Moscow has fired a second volley of gas disruption at Europe, causing fresh uncertainty and spiking prices,” said Kaushal Ramesh, senior analyst at Rystad Energy.
European utilities and governments have scrambled to refill underground gas storage that was depleted over the winter and have made enough progress to cover gas needs for the year without Russian supplies. But they would face difficulty in getting through the end of the upcoming winter without rationing. High natural gas prices have led to higher bills for home heating and electricity generated by the fuel.
European governments are trying to get off Russian energy and the EU's executive commission has proposed measures to reduce imports from Russia by two-thirds by year end. It remains to be seen if that can be achieved.
Before the war, Europe got 40% of its natural gas and 25% of its oil from Russia.