top of page

Gas Flow - A No Go

Yesterday Gasprom ( Russia's Largest Gas Company) said that from July 27th the flows to Europe will reduce further and will be only 20% of the usual volume. On the same day, it also mentioned that gas flows to China were at a record high.

The issue that has resulted in the reduction of gas supply to Europe is the turbines that have been sent for maintenance and have not returned till now. This has led European leaders to prepare a policy to reduce gas consumption by 15% throughout the EU. This according to reports would help have better inventory levels at the start of winter.

The largest impact of the reduction in Gas supply is on Germany. And the companies along with unions based in the country have already raised the warning that any reduction in usual gas supply or rationing of consumption will have long-lasting impacts on the economy.

Most economists have estimated that it would impact the German GDP by 5%. But as most times they have been proven wrong, this time would not be any different. The impact of such real-world issues will have a firmer negative impact on the economy.

The German government had already announced an energy price hike that will be effective in September or October 2022.

These are clear indications of a depression formed in the real economy but will be limited to Germany or Europe only is yet to be seen.


Los comentarios se han desactivado.
bottom of page