Concern about crisis in the whole region
Sweden helps energy companies with billions
9/3/2022 9:56 p.m
The fact that Russia is cutting off its gas supplies to Germany also has an impact on Sweden. The Swedish government fears that an entire region in the south could plunge into a crisis and is also preparing billions in aid for companies in neighboring countries.
After the interruption of Russian gas supplies through the Nord Stream 1 pipeline, Sweden wants to prevent a financial crisis with billions in guarantees for energy companies in Nordic and Baltic countries. At a press conference, Swedish Prime Minister Magdalena Andersson spoke of the danger of a “winter of war”. The financial guarantees in the billions would give the energy companies, which are experiencing difficulties as a result of the Ukraine war, “the breathing space they need.”
The financing guarantees still have to be worked out in detail, but should come into force on Monday before the stock exchanges close. They are then expected to cover all Nordic and Baltic energy companies over the next two weeks. Members of the Swedish parliament have been called back from their summer break to vote on it on Monday.
Southern Sweden dependent on German electricity prices
Russian gas giant Gazprom has suspended gas supplies to Germany through the Nord Stream 1 pipeline indefinitely. The group justified this on Friday evening with an oil leak on a turbine, but did not provide any information on the duration of the delivery stop. As a result, even higher costs for energy companies are expected.
“Russia’s energy war has serious consequences for Europe and Swedish households and businesses,” Andersson said. This applies “especially in southern Sweden, which is dependent on electricity prices in Germany, which in turn are very dependent on gas”.
“If we don’t act soon, this could lead to serious disruption in the Nordic countries and the Baltic countries,” warned the Swedish Prime Minister. “In the worst case, we would plunge into a financial crisis.” Swedish Finance Minister Mikael Damberg said at the press conference that Sweden’s measures would “ensure the financial stability not only of Sweden but of the Nordic region as a whole”.