Europe risks rationing if Putin cuts off Russian gas supply [Fortune]
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Source: Fortune
The clock is ticking in a standoff over the Kremlin's demand that its customers in Europe pay in rubles for the fuel, which the region depends on for a fifth of its power generation. The European Union has said the decree violates sanctions and hands more power to Russia. It suggested on Friday, but it's up to Moscow to decide if that's acceptable. Payments come due in May, and that's when the moment of truth arrives. By refusing President Vladimir Putin's payment terms and testing to turn off the taps, European buyers “would be running a very real risk of their supplies being cut,” said Katja Yafimava, a senior research fellow at the Oxford Institute for Energy Studies. The game of geopolitical chicken could lead to Europe rationing energy for the first time since the oil crisis in the 1970s. As the biggest consumer of Russian gas in Europe, Germany is most exposed, but the fallout would ripple across the continent and beyond. Here's what could happen: Market meltdown Euro
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