# EU asks countries to cut gas demand by 15% until spring
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-07-20
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: EU Urges 15% Cut in Gas Use Amid Russian Threat
Meta Description: Learn how the European Union is preparing for potential gas shortages and how countries are racing to implement emergency plans to reduce gas consumption and
URL: https://financedigest.com/eu-asks-countries-to-cut-gas-demand-by-15-until-springhtml

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By Kate Abnett

BRUSSELS (Reuters) -The European Union set out emergency plans on Wednesday for countries to cut their gas use by 15% until March, warning them that without deep cuts now they could struggle for fuel during winter if Russia cuts off supply.

Europe is racing to fill its gas storage ahead of winter and build a buffer in case Moscow further restricts supplies in retaliation for European support for Ukraine following Russia’s invasion.

A dozen EU countries are already facing reduced Russian deliveries. EU officials [say a full Russian](https://www.financedigest.com/citigroup-says-will-close-russian-consumer-commercial-business.html "Citigroup says will close Russian consumer, commercial business") gas halt is likely.

The European Commission on Wednesday proposed a voluntary [target for all EU countries to cut](https://www.financedigest.com/eu-sets-recycling-reuse-targets-to-cut-packaging-waste.html "EU sets recycling, reuse targets to cut packaging waste") gas use by 15% from August to March, compared with their average consumption in the same period during 2016-2021.

The proposal would enable Brussels to make the target mandatory in a supply emergency, if the EU declares a substantial risk of severe gas shortages.

The regulation [needs approval from a reinforced majority of EU countries](https://www.financedigest.com/5-countries-you-need-to-have-an-offshore-account-in.html "5 Countries You Need To Have An Offshore Account In"). Country diplomats are set to discuss it on Friday, with the [aim of approving it at an emergency meeting of their energy](https://www.financedigest.com/varo-energy-buys-80-of-dutch-biogas-firm-aims-to-double-capacity-by-2026.html "Varo Energy buys 80% of Dutch biogas firm; aims to double capacity by 2026") ministers on July 26.

“Russia is blackmailing us. [Russia is using energy as a weapon](https://www.financedigest.com/russia-says-no-need-to-use-nuclear-weapons-in-ukraine.html "Russia says ‘no need’ to use nuclear weapons in Ukraine"). And therefore, in any event, whether it’s a partial, major cut-off of Russian gas or a total cut-off of Russian gas, Europe needs to be ready,” EU Commission President Ursula [von der Leyen](https://www.financedigest.com/eu-will-propose-windfall-levies-on-energy-firms-von-der-leyen-says.html "EU will propose windfall levies on energy firms, von der Leyen says") said.

The plan has faced resistance from some countries, which feel their [contingency plans](https://www.financedigest.com/private-equity-firms-hungry-for-investment-opportunities-but-business-owners-must-be-cautious.html "Half of Security Professionals Had No Contingency Plan in Place for COVID-19") do not need reinforcement from the EU. Countries would be required to update their emergency gas [plans by end-September to show how they will meet](https://www.financedigest.com/uks-sunak-plans-to-meet-biden-in-g20-summit.html "UK’s Sunak plans to meet Biden in G20 summit") the EU target.

Among those opposed is Poland, which has filled its gas storage to 98% of capacity after [Russia cut its supply](https://www.financedigest.com/exclusive-kazakh-mcdonalds-shut-outlets-temporarily-after-halting-supplies-from-russia-sources.html "Exclusive-Kazakh McDonald’s shut outlets temporarily after halting supplies from Russia – sources") in April. Others have less stored, such as Hungary, which is at 47% full.

But EU energy policy chief Kadri Simson said countries have reduced their combined gas [demand by just 5% despite months of dwindling supplies from Russia and soaring prices](https://www.financedigest.com/musk-says-tesla-price-cuts-triggered-demand-2023-sales-could-hit-2-million-vehicles.html "Musk says Tesla price cuts triggered demand, 2023 sales could hit 2 million vehicles"), with deeper cuts urgently needed.

A 15% cut would save about 45 billion cubic metres of gas from August-March. [Russia supplied](https://www.financedigest.com/europes-alternatives-if-russia-shuts-off-gas-supply.html "Europe’s alternatives if Russia shuts off gas supply") 40% of the EU’s gas before its invasion of Ukraine, or around 155 bcm per year, but flows have since plummeted.

The International Monetary Fund last [week warned a Russian gas cut](https://www.financedigest.com/meta-plans-to-cut-thousands-of-jobs-as-soon-as-this-week-bloomberg-news.html "Meta plans to cut thousands of jobs as soon as this week – Bloomberg News") could plunge European economies into recession.

Brussels suggested measures governments can take to curb gas use, including auctions for compensation to industries that cut gas use and limits on heating and cooling temperatures in [public buildings](https://www.financedigest.com/public-power-corp-rwe-to-build-five-solar-farms-in-greece.html "Public Power Corp, RWE to build five solar farms in Greece"). Governments should also decide the order in which they would force [industries to close in a supply](https://www.financedigest.com/how-to-create-a-more-efficient-transparent-and-trusted-supply-chain-for-the-gold-jewellery-industry-using-blockchain-technology.html "How to create a more efficient, transparent and trusted supply chain for the gold jewellery industry using blockchain technology") emergency.

Households are classed as [“protected consumers” under EU rules and would be shielded](https://www.financedigest.com/banks-can-provide-a-protective-shield-to-defend-customers-from-cyber-attack.html "Banks can provide a protective shield to defend customers from cyber attack") from such curbs.

Gas deliveries are due to restart through Russia’s [Nord Stream](https://www.financedigest.com/denmark-invites-nord-stream-operator-to-help-salvage-unidentified-object.html "Denmark invites Nord Stream operator to help salvage unidentified object") 1 pipeline to Germany on Thursday, after annual maintenance. Sources told Reuters that [flows would likely resume](https://www.financedigest.com/yamal-europe-eastward-gas-flows-resume-as-nord-stream-lays-idle.html "Yamal-Europe eastward gas flows resume as Nord Stream lays idle"), despite some governments’ fears they would not, but at below full capacity.

(Reporting by Kate Abnett; Editing by David Evans and Edmund Blair)


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