Yahoo Finance Putin ‘most likely’ to cut gas supplies to Europe
Vladimir Putin is "most likely" to cut Europe off from Russia's gas supply in a move that will spark rationing and chaos across the Continent, France's economic and finance minister has warned.
European nations should brace for a "total cut-off", Bruno Le Maire said, as the French government pinpoints companies that need priority protection and prepares to tell others to shut down or reduce their usage.
Speaking at the Rencontres Economiques conference in Aix-en Provence, Mr Le Maire said: "Let's prepare for a total cut-off of Russian gas; Today that is the most likely option.
"You also have to prepare load-shedding plans, we are doing it.
"It means looking in a very specific way at each company, each employment area. Which are the companies that should reduce their energy consumption, and which are the ones that cannot."
Mr Le Maire pointed to the construction and minerals producer Saint-Gobain as the type of company that should have its gas supplies protected.
The warning comes as the eurozone is poised to sink into recession regardless of whether the Kremlin turns off the gas taps, according to an economist.
Concerns have been growing among European nations that intensifying the energy crisis could drag Europe into a downturn, with blackouts and rationing becoming commonplace by the winter.
Carsten Brzeski, of ING, said on Thursday that the eurozone's long-awaited economic recovery had been cancelled because none of the risk factors were likely to disappear anytime soon.
ING cut its 2022 growth forecast for the region to 2.6pc and predicted a recession at the turn of the year.
Mr Brzeski said this forecast did not include a full cut-off of Russian gas supplies. He added: “The looming recession, not only in the eurozone but also in the US, along with doubts about debt sustainability in the eurozone, should prevent the ECB from going beyond the initial normalisation, keeping rates on hold in 2023."
A more severe backlash over energy is expected as the West continues to arm the Ukrainian defence against the Russian invasion orchestrated by Putin, who claimed earlier this week that Moscow had barely started its military campaign in the former Soviet nation.
Speaking at a meeting with leaders of the Kremlin-controlled parliament on Thursday, the Russian President said: “Everyone should know that, by and large, we haven’t started anything yet in earnest.
“At the same time, we don’t reject peace talks. But those who reject them should know that the further it goes, the harder it will be for them to negotiate with us.”
