Handelsblatt reported that despite posting best ever adjusted EBIDTA of EUR 479 million in January-March 2022 quarter, ThyssenKrupp's steel division CEO Mr Bernhard Osburg is concerned about the future as the fear that the war in Ukraine could lead to an interruption in German gas supplies weighs heavily at the Duisburg site. Mr Osburg told Handelsblatt “If we can cover less than 50% of our current gas requirements, it will be difficult to maintain stable production. This means a high risk because many systems are designed for continuous operation. A coking plant, for example, cannot be shut down at short notice without causing major economic damage.”Germany, which has long remained the largest buyer of Russian natural gas, has stated as fact what's long been among its greatest 'worst case scenario' fears, that Russia is using its energy exports as a weapon. However, Moscow is arguing that its latest actions to reduce supplies, estimated at this point to have been at about a 3% reduction of normal deliveries, is a natural and inevitable response to Germany seizing Gazprom subsidiaries in the country to ensure supply against the backdrop of the Ukraine invasion. This after Gazprom Germania was seized by the German state amid heightened pressure for European companies to cut off relations with Russian entities. As a result, like many other German companies from the energy intensive industry, ThyssenKrupp is running through various scenarios so that it can react quickly to a changed supply situation in an emergency.After Russia cut off gas supplies to Poland and Bulgaria in April, the Commission is asking EU member states to prepare for a full scale supply shock. In a policy document due to be adopted on 18 May, the European Commission has urged EU member states to step up preparations for a full disruption of Russian gas supplies by considering emergency measures like a temporary cap on gas prices. The draft says “While previous measures adopted in the Autumn were calibrated to address a situation of sustained high gas prices, a different set of measures may become worth considering in the event of a sudden large scale or even full disruption of the supplies of Russian gas leading to unbearably high gas prices and inadequate supply of gas. First among the new measures envisaged is a direct market intervention with a maximum regulated price for natural gas delivered to European consumers and companies.”Also, the European Commission sent its revised guidelines to member states, signaling that sanctions against Moscow do not prevent gas importers from opening new bank accounts. That means payments, satisfying Russian President Mr Vladimir Putin’s demands, could be made. Russia had asked companies to accept a new transaction method that would involve opening two accounts at Gazprombank, one in euros or dollars and another one in rubles.
Handelsblatt reported that despite posting best ever adjusted EBIDTA of EUR 479 million in January-March 2022 quarter, ThyssenKrupp's steel division CEO Mr Bernhard Osburg is concerned about the future as the fear that the war in Ukraine could lead to an interruption in German gas supplies weighs heavily at the Duisburg site. Mr Osburg told Handelsblatt “If we can cover less than 50% of our current gas requirements, it will be difficult to maintain stable production. This means a high risk because many systems are designed for continuous operation. A coking plant, for example, cannot be shut down at short notice without causing major economic damage.”Germany, which has long remained the largest buyer of Russian natural gas, has stated as fact what's long been among its greatest 'worst case scenario' fears, that Russia is using its energy exports as a weapon. However, Moscow is arguing that its latest actions to reduce supplies, estimated at this point to have been at about a 3% reduction of normal deliveries, is a natural and inevitable response to Germany seizing Gazprom subsidiaries in the country to ensure supply against the backdrop of the Ukraine invasion. This after Gazprom Germania was seized by the German state amid heightened pressure for European companies to cut off relations with Russian entities. As a result, like many other German companies from the energy intensive industry, ThyssenKrupp is running through various scenarios so that it can react quickly to a changed supply situation in an emergency.After Russia cut off gas supplies to Poland and Bulgaria in April, the Commission is asking EU member states to prepare for a full scale supply shock. In a policy document due to be adopted on 18 May, the European Commission has urged EU member states to step up preparations for a full disruption of Russian gas supplies by considering emergency measures like a temporary cap on gas prices. The draft says “While previous measures adopted in the Autumn were calibrated to address a situation of sustained high gas prices, a different set of measures may become worth considering in the event of a sudden large scale or even full disruption of the supplies of Russian gas leading to unbearably high gas prices and inadequate supply of gas. First among the new measures envisaged is a direct market intervention with a maximum regulated price for natural gas delivered to European consumers and companies.”Also, the European Commission sent its revised guidelines to member states, signaling that sanctions against Moscow do not prevent gas importers from opening new bank accounts. That means payments, satisfying Russian President Mr Vladimir Putin’s demands, could be made. Russia had asked companies to accept a new transaction method that would involve opening two accounts at Gazprombank, one in euros or dollars and another one in rubles.
