• Germany announces emergency measures to meet its energy needs following drop in Russian gas supplies.
• Coal-fired power plants will be used instead to generate electricity. Steps also include an “auction” system for the sale of gas to manufacturers.
• EU officials believe Moscow is punishing allies of Ukraine, where Russian forces launched an invasion.

Germany announced emergency measures on Sunday to meet its energy needs following a drop in Russian gas supplies, including a “bitter but indispensable” Step.

“To reduce gas consumption, less gas must be used to generate electricity. Coal-fired power plants will have to be used more instead,” the economy ministry said in a statement.

The move comes after Moscow increased pressure on Western allies by drastically reducing natural gas flows through its pipelines to Western Europe, driving up energy prices.

Gazprom said the supply reductions via the Nord Stream pipeline are the result of repair work, but EU officials believe Moscow is punishing allies of Ukraine, where Russian forces launched an invasion in February.

Read More:  Russian war crimes in Ukraine are sent to Germany

Berlin’s temporary recourse to coal marks a turnaround for Chancellor Olaf Scholz’s ruling coalition of Social Democrats, Greens and the liberal FDP, which has vowed to wind down its coal usage by 2030.

“It’s bitter but indispensable for reducing gas consumption,” economy and climate minister Robert Habeck said in a statement.

A law outlining the new measures is due to be adopted in the coming weeks, he added.

Under the measures, the government will allow the use of coal-fired power plants that are currently considered in reserve for use only as a last resort.

The steps also include an “auction” system for the sale of gas to manufacturers, which, according to the government, will help bring down consumption by the power sector.

A procedure similar to a tender process will see the state offer remuneration to companies promising the biggest energy savings.

The mechanical engineering industry group VDMA welcomed the move.

“That allows you to direct the reduction at the place where the damage is less significant,” it said in a statement.

Funding will also be released to finance the filling up of tanks before winter.

Habeck stressed that the increased use of coal was only “provisional” in the face of the “worsening” situation in the gas market.

Gazprom has said that exports to countries that did not belong to the former Soviet Union were down 28.9 percent between January 1 and June 15 compared to the same period last year.

After cutting daily gas supplies to Germany and Italy, Gazprom CEO Alexei Miller said last week that Moscow will play by its own rules.

“Our product, our rules. We don’t play by rules we didn’t create,” he said during a panel discussion at the Saint Petersburg International Economic Forum in Russia’s second city.

Germany is among several European countries that are highly reliant upon Russian gas for their energy needs and countries are racing to replenish their reserves for the following winter.

Berlin has managed to reduce the share of its natural gas supplied by Russia from 55 percent before the invasion to 35 percent — thanks to increased deliveries from countries like Norway and the Netherlands, and through liquefied natural gas contracts (LNG).

But Habeck acknowledged that the situation was “serious”.

“We shouldn’t be under any illusions, we are in a showdown with (Russian President Vladimir) Putin,” he said.

The German government is also emphasizing the need to save energy, including by manufacturers. “Every kilowatt counts,” the minister said.

It has launched a big awareness campaign directed at the general public and businesses.

The EU wants the gas storage infrastructures of its member states to be filled to at least 80 percent of their capacity by November.

Read More: Germany races to stockpile gas before winter

In Germany, reserves are currently at 56 percent which is higher than the average of recent years, Habeck said, adding that for now supply was assured.

However, he warned that the “absolute priority” was to ensure that winter gas reserves were fully stocked.

Since Russia’s invasion of Ukraine, EU countries have scrambled to wean themselves off Russian energy, but are split on imposing a natural gas embargo due to several member states’ heavy reliance on Moscow’s supplies.