Germany\u2019s top union official Yasmin Fahimi, has said the country\u2019s entire industries could collapse due to Russia\u2019s natural-gas cuts.<\/p>\n\n\n\n
Europe\u2019s largest economy is heavily reliant on natural gas piped in from Russia but a key gas pipeline is expected to be shut from July 11-21 for maintenance amid fears supplies will not resume after that.<\/p>\n\n\n\n
This may put the entire branches of industry in danger of collapsing permanently because of the gas bottlenecks: aluminum, glass, the chemical industry,\u201d Fahimi, the head of the German Federation of Trade Unions, told the media.<\/p>\n\n\n\n
\u201cSuch a collapse would have massive consequences for the entire economy and jobs in Germany.\u201d<\/p>\n\n\n\n
The chemical industry, which employs about 346,000 people, is the third-largest industry in Germany, according to Germany Trade & Invest,the country\u2019s investment promotion agency.<\/p>\n\n\n\n
Germany Europe\u2019s largest economy is reliant on piped natural gas from Russia, which accounts for 35% of its imports of the fuel. The industrial powerhouse imports almost all of the natural gas it uses, which accounts for about a quarter of the country\u2019s total energy mix, according to the economy ministry.<\/p>\n\n\n\n
The country\u2019s energy crisis is already driving inflation to record highs, which threatens social stability, Fahimi said.<\/p>\n\n\n\n
ussian state gas giant Gazprom has already cut gas flows to Germanyvia the key Nord Stream 1 pipeline by 60% from last month, citing an equipment hold-up in Canada as a result of sanctions over the war in Ukraine.<\/p>\n\n\n\n
Berlin fears the situation may get worse after the pipeline\u2019s scheduled shutdown for maintenance from July 11 to July 21. Germany\u2019s economy minister Robert Habeck said last week natural-gas flows may not resume after the scheduled works, which would in turn impact fuel storage ahead of winter, when demand spikes.<\/p>\n\n\n\n
\u201cWe aren\u2019t dealing with erratic decisions but with economic warfare, completely rational and very clear,\u201d Habeck said at an event on Saturday, Bloomberg reported.<\/p>\n\n\n\n
Germany Europe\u2019s largest economy moved into the second stage of its three-stage emergency gas plan last month after Russia slowed supplies to the country. If the situation worsens, the country may start rationing natural gas in the last of the three-stage plan, as outlined by Germany\u2019s economy ministry.<\/p>\n\n\n\n
Under the country\u2019s emergency plan, industry would be first in line for supply cuts. The move could devastate the economy and lead to job losses, Germany business leaders and unions have said.<\/p>\n\n\n\n
Habeck said natural-gas rationing would likely hit factories not connected to the residential networks first, per Bloomberg.<\/p>\n\n\n\n
Benchmark Dutch natural-gas futures have more than doubled year-to-date.<\/p>\n\n\n\n