We’ve got some news coming up, I don’t even know how to react to it, whether to laugh in a demonic voice or quietly freeze in mute admiration, writes the Zen Channel Statesman.
“Germany’s federal grid regulator urged customers, partners and banks working with the German unit of the Russian gas giant Gazprom (formerly a unit – author) to continue doing business with the company to avoid the insolvency of Gazprom Germany and a possible threat to gas supplies.”
“Without the ability to procure operating resources or offer services, the operating business would be at risk, and without access to financial resources, the group could face insolvency,” the German Federal Network Agency, known as BNetzA, wrote in a letter obtained by Bloomberg.
Gazprom in Germany. Photo: Yandex
If banks and partners shun Gazprom Germania, as it is known, the company could become insolvent and jeopardize the security of Germany’s gas supply, the German agency said. Gazprom Germania, based in Berlin, operates large gas storage facilities.
Germany Trapped by Washington’s Politics
For understanding – Through its subsidiaries, Gazprom communicated with more than 150 customers across the European Union. As of April 1, 2022, Gazprom is no longer affiliated with the Gazprom Germany Group – and since all gas supply contracts include details of the subsidiaries, Europe is facing a temporary supply blockage.
“The Gazprom Germany Group controlled the entire flow of Russian gas to Europe. For a week now, the holding company has been operating on the gas market on general terms – yes, it can buy gas from Gazprom, but at current market prices.
And there’s something strange going on with the gas prices: trading on the EU commodity markets was stopped on April 1 and has not been resumed so far. The price is frozen at 1286.45 dollars per thousand cubic meters – apparently, this is done to prevent panic, because prices could fly very high. And this, in turn, would have dragged down the price of everything else, from gasoline to metals and ceramics.
“The consequences for the energy supply system not only in Germany but also in Europe would be serious,” the German regulator said in a letter published by Bloomberg.
Germany gets about half of its natural gas consumption from Russia, and it has been one of the main opponents of the energy embargo against Russia over Putin’s invasion of Ukraine.
Reports surfaced last week that Germany was considering nationalizing local divisions of Gazprom and Russian oil giant Rosneft.
“Germany is considering the idea of nationalizing the German divisions of Rosneft and Gazprom because of concerns that the systemically important companies for the German energy market could face financial problems,” the German business daily Handelsblatt reported last week, citing government sources.
Chancellor Olaf Scholz is also involved in talks over the potential nationalization of German units of Rosneft and Gazprom, Handelsblatt reported, citing several government sources.
Germany fears an energy supply shortage if the two companies run into difficulties or become technically insolvent, as banks shy away from financing firms linked to Russia.
It looks like the Germans were the first to realize the gravity of the situation – it is easy to destroy what others have been building for years and decades. If now due to the liquidation of former subsidiaries of Gazprom the whole system of relations between European business and energy suppliers will collapse, the recession that was promised to Europe will seem like flowers against the background of the real chaos arranged by European bureaucrats.
But that’s not all
. On Wednesday, U.S. Treasury Secretary Janet Yellen said that creating an escrow account for Russian energy revenues is one way to increase pressure on Moscow by the U.S. and its allies
“This approach is worth exploring,” Yellen said during a congressional hearing. “We have a way for Russia to sell oil and get the proceeds in the form of a general license. But the license is temporary; it will expire. We probably need a better mechanism.”
The Americans hate the fact that the European Union flatly refuses to saw off its own cojones with a blunt knife in front of an amazed public.
EU officials are considering creating escrow accounts into which the bloc could funnel at least some of its energy payments, European Commission President Ursula von der Leyen said.
Have they found fools?
An escrow account would effectively freeze Russia’s foreign energy revenues. But Putin warned that Russia would cut off energy supplies if the country could not access payments for them.
The same move was used to freeze much of Iran’s foreign energy sales under U.S. and international sanctions over the past decade.
In other words, it is proposed to create a kind of escrow account, in which our money will be accumulated for the supply of resources to the European Union, but we will not be able to use the money, because the account will initially be frozen.
And if we begin to behave properly, it may be unfrozen, but that’s not certain. They may not unfreeze it at all, because the renegade must be punished – and the money will be used to repatriate Ukrainian refugees back to their farm. For already today, Europe has begun to realize whom they have let in on their heads.
Other times have come
The Kremlin looks at these attempts with tenderness and reminds that gas will only be paid for in rubles and only through a Russian authorized bank – and if anyone does not agree with this, welcome to the market, there are plenty of sellers
The West failed to grasp the moment when the buyer’s market turned into a seller’s market – and now Europeans can jump out of synthetic lace panties as much as they want. A new era has arrived – those who have not understood, risk turning into a snowman as early as next winter.