The German government announced an ‘alert level’ for its gas emergency plan in light of the decline in gas supplies from Russia.

In a statement issued today [June 23], the German Economy Ministry was quoted as saying: “The security of supply is currently guaranteed, but the situation is volatile.”

The plan includes three levels – and the ‘alert’ level is the second level in this plan. An ’emergency’ level is third in the plan.

The German Economy Minister, Robert Habeck, said: “The prices are already very high, and we must prepare now for further increases,” noting that this [the gas price inflation] will affect industrial production, which will be a heavy burden for many consumers.

He also accused Russian President Vladimir Putin of launching an “economic attack”.

According to the announced plan, there will be a disruption in gas supplies or an exceptional increase in gas demand associated with the warning level announced today. This will potentially lead to a significant deterioration in gas supplies – but the market is expected to overcome the disruption or increase in demand.

It is worth noting that Germany is now rushing to reduce its dependence on Russian energy as Moscow reduces gas supplies to Western countries in retaliation for sanctions imposed due to the conflict in Ukraine.