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Luxembourg isn»t ready to sign a gas agreement with Germany

Last time updated
12.09.22
Luxembourg isn»t ready to sign a gas agreement with Germany

An agreement would make Luxembourg obliged to supply Germany with gas to mitigate the energy crisis.

It is worth noting that Germany has signed such bilateral agreements only with Denmark and Austria. Many other countries in the bloc refuse to participate in this dialogue. It is understandable: were they to agree, they would have to pay compensation to their own gas companies.

This could exacerbate the crisis in Germany, said the Minister of Economy Robert Habeck. Such transactions between EU member states are a part of a larger emergency protection mechanism. It allows one country to receive gas from others if its own reserves are not enough to supply households and social institutions.

Luxembourg is not alone in its refusal. Belgium, the Netherlands and Poland also did not sign the treaty. The Czech Republic is still on the hedge. Theoretically, it’s ready for the conditions set, but with one caveat: if the maximum amount of compensation for suppliers is limited.

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Last time updated
12.09.22

Source: Bloomberg

Authors: Danila