“Whole industries are at risk of permanent collapse because of gas bottlenecks: aluminum, glass, the chemical industry,” Fahimi, head of the German Trade Union Confederation, told Bild am Sonntag. “Such a collapse would have huge consequences for the entire economy and jobs in Germany.” The chemical industry, which employs about 346,000 people, is the third largest industry in Germany, according to Germany Trade & Invest, the country’s investment promotion agency. Germany — Europe’s largest economy — depends on natural gas piped in from Russia, which accounts for 35% of its fuel imports. The industrial power plant imports almost all of the natural gas it uses, which accounts for about a quarter of the country’s total energy mix, according to the economy ministry. The country’s energy crisis is already driving inflation to record highs, which threatens social stability, Fahimi told Bild am Sonntag. Russian state gas giant Gazprom has already cut gas flows to Germany through its main Nord Stream 1 pipeline by 60% since last month, citing the suspension of equipment in Canada as a result of sanctions over the war in Ukraine. Berlin fears the situation could worsen after the planned shutdown of the pipeline for maintenance from July 11 to July 21. German Economy Minister Robert Habeck said last week that natural gas flows may not resume after the planned projects, which in turn will affect fuel storage ahead of winter when demand spikes. “We are not dealing with unstable decisions but economic warfare, completely rational and very clear,” Habeck said at an event on Saturday, according to Bloomberg. Germany — Europe’s biggest economy — moved into the second stage of a three-stage natural gas emergency plan last month after Russia slowed supplies to the country. If the situation worsens, the country may begin sequestering natural gas in the last of the three-stage plan, as outlined by Germany’s economy ministry. Under the country’s emergency plan, industry will be first in line for supply cuts. The move could destroy the economy and lead to job losses, German businessmen and unions said. According to Bloomberg, Habeck said natural gas distribution would likely hit plants not connected to residential grids first. Dutch gas futures have more than doubled year-to-date.
