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Stopping Russian gas? We have no solution, says the Deputy Minister of Commerce

According to Neděla, about two percent of the total domestic gas consumption is mined in the Czech Republic, the rest is almost exclusively Russian gas. “There is no solution if gas supplies are stopped overnight,” he said.

According to Neděla, a large part of the whole of Europe would have a problem. The only possible approach would be to jointly purchase gas within the EU and to point out its proportional distribution among Member States, as in the case of covid vaccines.

Resumption of operation of coal-fired power plants

According to Neděla, operation in decommissioned coal-fired power plants could be resumed in the Czech Republic to secure energy. He can imagine an agreement with their owners to supply this electricity directly to the most vulnerable groups, so they would not sell it through the stock exchange. However, according to the deputy, the restoration of the power plant operation would not be easy due to the failure rate and the way they were put into operation.

On Sunday, the committee also spoke about investments in savings and self-sufficiency, for example in the form of photovoltaic power plants on the roofs of houses. “But there is a shortage of materials and installation companies,” he said.

There is no money for supplies

On the acquisition of gas reserves, Neděl said that the state could not buy them, because they would cost about 150 billion crowns. “It wouldn’t help cover all the consumption anyway,” he said. According to him, the possibility is to create an incentive regime for traders who would buy the quantity required by the state. If they bought less gas, the rest could then be bought directly by the state or someone he entrusted, he added.

Russian President Vladimir Putin signed a decree on Thursday, according to which Russia will no longer take euros or dollars for gas intended for Europe from Friday, demanding payments in rubles. The state gas giant Gazprom has been ordered to adjust supply contracts in this way. Czech gas suppliers have previously stated that they will not jeopardize supply measures because they buy gas on European wholesale markets or at virtual points of sale from various large energy suppliers.

Germany, France and Austria: No!

Putin has said that if payments are not made, gas supply contracts will be suspended. French Finance Minister Bruno Le Maire and German Economy Minister Robert Habeck have rejected Putin’s claim, saying they were unacceptable breaches of contract and extortion. According to the ministers, both countries are preparing to stop gas supplies from Russia.

German Chancellor Olaf Scholz and his Austrian colleague Karel Nehammer later stated at a press conference in Berlin that they refused to pay for supplies of Russian gas in rubles. Scholz added that he had already told Russian President Putin in a telephone conversation and that it was now up to the head of the Kremlin to behave. Both chancellors agreed that the existing treaties provided for the European currency, the euro.

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