“In Economic War”
RWE boss expects gas cuts in Moscow
05/21/2022 12:33 p.m
Germany is dependent on Russian gas. RWE boss Krebber assumes that the Kremlin will exploit this dependency and cut deliveries: “The Russians use every opportunity to make it more difficult for us.”
The CEO of the energy group RWE, Markus Krebber, assumes that Russia will gradually reduce gas supplies to Europe. “We are in an economic war and the Russians are using every opportunity to make it harder for us by reducing delivery volumes, which leads to higher prices,” Krebber told the “Frankfurter Allgemeine Sonntagszeitung”. “I expect a further shortage of gas supplies and not that someone turns off the gas completely.”
Krebber added that Germany could be independent of Russian gas by spring 2025 if the necessary infrastructure is expanded quickly. “The supply problems would perhaps be manageable to some extent a year earlier.”
In the event of a gas shortage, Krebber advocated leaving the distribution of the gas largely to the market. “We need a three-stage process: There are certain customers who absolutely deserve protection, for example in the healthcare sector. Secondly, price signals are the best way to distribute a tight supply efficiently, even in shortage situations,” said the manager. “Thirdly, we need incentives for substitution and savings.” Private households could not be forced to make savings.
RWE itself is now largely independent of Russian gas, said the CEO. “We still have a contract for a residual amount from Russia that expires at the end of next year. But the size is not really relevant for us. The situation is manageable for us.”