AFP

UK regulator bans Unilever's 'misleading' green ad

Britain on Wednesday banned an advertisement from consumer goods group Unilever over “misleading” environmental claims for its laundry detergent brand Persil.

The Advertising Standards Authority (ASA) said the television advert, which claimed Persil was “kinder to our planet”, had failed to demonstrate environmental benefits.

The ad, featuring children picking up litter on rivers and beaches, stated that Persil bottles were made with 50-percent recycled plastic and that the liquid detergent cleaned at low temperatures.

“We concluded that the basis of the claim ‘kinder to our planet’ had not been made clear,” the ASA said in a statement.

“Additionally, in the absence of evidence demonstrating that the full life cycle of the product had a lesser environmental impact compared to a previous formulation, we concluded the ad was likely to mislead.”

The regulator ruled that the ad must not appear again in its current form.

Unilever said in response to the ruling: “We are disappointed with the ASA adjudication as this TV advertisement.

“We are committed to making on-going improvements to all our products to make them more sustainable and will continue to look at how we can share this with our shoppers.” 

India GDP surges 13.5% on pandemic rebound, despite headwinds

A post-pandemic rebound saw India’s economy grow 13.5 percent in the June quarter, official figures showed Wednesday, but inflation and other headwinds signal a looming slowdown in Asia’s third-largest economy.

The double-digit expansion from last year reflects a dramatic uptick in activity since mid-2021, when the peak of the country’s most devastating coronavirus wave began to recede.

That outbreak saw thousands of people dying across India each day, overwhelming hospitals and crematoriums, and came after an extended lockdown that pummelled consumer spending and brought factories to a standstill. 

Wednesday’s figure from the national statistics office was the highest since the 20.1 percent expansion recorded during the same period last year, at a time when business activity was recovering from government shutdown edicts.

State Bank of India chief economic advisor Soumya Kanti Ghosh said in a note that India was navigating well through global uncertainty “with leading indicators continuing to show acceleration”.

A rebound in capital inflows in August after months of investor flight from Indian debt and equities also pointed to improved sentiment, Ghosh said.

But Wednesday’s result is lower than the 16.2 percent forecast by India’s central bank, and other economists expect headwinds to buffet the economy and dampen growth into the next year. 

Elevated crude oil prices and a seven percent fall in the rupee this year have hit living costs and left India struggling with a deteriorating trade balance. 

India’s merchandise trade deficit widened to a record $31 billion in July, compared to $10.6 billion in the same month last year, provisional data showed.

Import costs, led by petroleum products and coal, were more than twice as high as export revenues.

India imports more than 80 percent of its crude oil needs and shocks to the market since Russia’s invasion of Ukraine have left its 1.4 billion people struggling with higher fuel charges.

Consumer inflation has consistently overshot the central bank’s two-to-six percent target range this year, hitting an eight-year high of 7.79 percent in April before cooling to 6.71 percent in July.

In August, India’s central bank hiked interest rates for the third time in four months, pushing borrowing costs up to pre-pandemic levels.

The Reserve Bank of India forecasts 7.2 percent growth for the current financial year owing to “geopolitical tensions” and the risk of “global recession”. 

The International Monetary Fund last month slashed its own outlook for the same period to 7.4 percent, a figure that still exceeds every other major economy besides Saudi Arabia.

India GDP surges 13.5% on pandemic rebound, despite headwinds

A post-pandemic rebound saw India’s economy grow 13.5 percent in the June quarter, official figures showed Wednesday, but inflation and other headwinds signal a looming slowdown in Asia’s third-largest economy.

The double-digit expansion from last year reflects a dramatic uptick in activity since mid-2021, when the peak of the country’s most devastating coronavirus wave began to recede.

That outbreak saw thousands of people dying across India each day, overwhelming hospitals and crematoriums, and came after an extended lockdown that pummelled consumer spending and brought factories to a standstill. 

Wednesday’s figure from the national statistics office was the highest since the 20.1 percent expansion recorded during the same period last year, at a time when business activity was recovering from government shutdown edicts.

State Bank of India chief economic advisor Soumya Kanti Ghosh said in a note that India was navigating well through global uncertainty “with leading indicators continuing to show acceleration”.

A rebound in capital inflows in August after months of investor flight from Indian debt and equities also pointed to improved sentiment, Ghosh said.

But Wednesday’s result is lower than the 16.2 percent forecast by India’s central bank, and other economists expect headwinds to buffet the economy and dampen growth into the next year. 

Elevated crude oil prices and a seven percent fall in the rupee this year have hit living costs and left India struggling with a deteriorating trade balance. 

India’s merchandise trade deficit widened to a record $31 billion in July, compared to $10.6 billion in the same month last year, provisional data showed.

Import costs, led by petroleum products and coal, were more than twice as high as export revenues.

India imports more than 80 percent of its crude oil needs and shocks to the market since Russia’s invasion of Ukraine have left its 1.4 billion people struggling with higher fuel charges.

Consumer inflation has consistently overshot the central bank’s two-to-six percent target range this year, hitting an eight-year high of 7.79 percent in April before cooling to 6.71 percent in July.

In August, India’s central bank hiked interest rates for the third time in four months, pushing borrowing costs up to pre-pandemic levels.

The Reserve Bank of India forecasts 7.2 percent growth for the current financial year owing to “geopolitical tensions” and the risk of “global recession”. 

The International Monetary Fund last month slashed its own outlook for the same period to 7.4 percent, a figure that still exceeds every other major economy besides Saudi Arabia.

Insurance payments on defaulted Russia debt to move forward

Russia’s default on its international debt was fully acknowledged Wednesday by a little-known panel of financial firms when they set a date for the procedure to compensate insured investors.

The Credit Derivatives Determinations Committee (CDDC) for Europe said it was scheduling an auction to settle credit derivate transactions on certain Russian government bonds on September 12.

Moody’s ratings agency said in June that Russia defaulted on its foreign debt for the first time in a century, after bond holders did not receive $100 million in interest payments.

But as Western ratings agencies were no longer able to rate Russian debt under Western sanctions, an official determination on whether Russia had defaulted and therefore payment of insurance claims could go forward, fell to the CDDC.

Based in London, the CDDC is made up of 15 leading banks and financial firms that field requests from investors who want to know whether a missed debt payment constitutes a “credit event”.

If they do so, they schedule a procedure called an auction to determine the price paid on credit default swaps, a sort of insurance bondholders can purchase to protect against default by borrowers.

The CDDC has since June been considering the case of Russia.  

At the end of June it determined a credit event had indeed occured, but it did not launch the procedure for payment of credit default swaps as is it sought to ensure the payments were in compliance with Western sanctions.

Russian authorities have insisted throughout they have the funds to honour the country’s debt, but Western sanctions prevented them from making payment in dollars as the bonds required.

Moscow called the predicament a “farce” and accused the West of pushing an “artificial” default.

Wednesday’s statement triggered the auction process on eight Russian government bond issues.

The country last defaulted on its foreign debt in 1918, when Bolshevik revolution leader Vladimir Ilyich Lenin refused to recognise the massive debts of the deposed tsar’s regime.

European stocks drop on record eurozone inflation

European equities slid Wednesday as record-high eurozone inflation fanned fears that more interest rate hikes could herald recession.

Frankfurt, London and Paris stocks dropped as data showed eurozone inflation hit 9.1 percent in August on surging fuel prices, sparking talk of rising European Central Bank rates.

Most Asian markets meanwhile fell on concerns the US Federal Reserve’s rate-hiking policy would send the world’s biggest economy into recession, with oil prices diving on demand jitters.

The ECB is set to lift borrowing costs next week, having increased them in July for the first time in a decade to help tackle rampant inflation.

– ‘Real’ recession risk –

“The reality is that a more aggressive (ECB) tightening is going to be needed, and when the economy is already as fragile as it is, the situation quickly starts to look quite problematic,” OANDA analyst Craig Erlam told AFP.

“That’s not good for stocks as it’s extremely difficult for companies to prosper if the bloc is in a deep recession made worse by higher interest rates, which is now a real risk.”

Major central banks are rushing to contain runaway consumer price inflation that has largely been prompted by fallout from key energy supplier Russia’s invasion of Ukraine.

State energy giant Gazprom suspended gas deliveries to Germany on a major pipeline on Wednesday.

It was the latest in a series of supply halts that have fuelled Europe’s energy crisis and sent gas and electricity prices soaring before the peak-demand winter.

– Sentiment takes a hiding –

Wall Street’s three main indexes fell for a third straight day Tuesday to sit at a one-month low, despite healthy data on US consumer sentiment and job openings.

Investor sentiment took a hiding after Fed chief Jerome Powell warned last Friday that the US central bank would need to tighten policy much more to tackle sky-high inflation.

“Inflation remains the key issue, with commentary from both the Fed and ECB serving to highlight the fact that controlling prices will remain the central target irrespective of economic suffering,” IG analyst Joshua Mahony told AFP.

“A drawn out period of higher costs, higher wages, and lower demand point towards further downside for equity markets,” he noted.

Traders are now awaiting the release of US job-creation figures on Friday for a better idea about the state of the economy.

– Key figures at around 1130 GMT –

London – FTSE 100: DOWN 1.1 percent at 7,279.75 points

Frankfurt – DAX: DOWN 0.4 percent at 12,912.99

Paris – CAC 40: DOWN 0.7 percent at 6,168.14

EURO STOXX 50: DOWN 0.5 percent at 3,545.14

Tokyo – Nikkei 225: DOWN 0.4 percent at 28,091.53 (close)

Hong Kong – Hang Seng Index: FLAT at 19,954.39 (close)

Shanghai – Composite: DOWN 0.8 percent at 3,202.14 (close)

New York – Dow: DOWN 1.0 percent at 31,790.87 (close)

Euro/dollar: DOWN at $0.9996 from $1.0015 on Tuesday

Pound/dollar: DOWN at $1.1629 from $1.1656

Euro/pound: UP at 85.95 pence from 85.92 pence

Dollar/yen: DOWN at 138.71 yen from 139.00 yen

West Texas Intermediate: DOWN 2.7 percent at $89.16 per barrel

Brent North Sea crude: DOWN 3.3 percent at $96.00 per barrel

burs-rfj/lcm

European stocks drop on record eurozone inflation

European equities slid Wednesday as record-high eurozone inflation fanned fears that more interest rate hikes could herald recession.

Frankfurt, London and Paris stocks dropped as data showed eurozone inflation hit 9.1 percent in August on surging fuel prices, sparking talk of rising European Central Bank rates.

Most Asian markets meanwhile fell on concerns the US Federal Reserve’s rate-hiking policy would send the world’s biggest economy into recession, with oil prices diving on demand jitters.

The ECB is set to lift borrowing costs next week, having increased them in July for the first time in a decade to help tackle rampant inflation.

– ‘Real’ recession risk –

“The reality is that a more aggressive (ECB) tightening is going to be needed, and when the economy is already as fragile as it is, the situation quickly starts to look quite problematic,” OANDA analyst Craig Erlam told AFP.

“That’s not good for stocks as it’s extremely difficult for companies to prosper if the bloc is in a deep recession made worse by higher interest rates, which is now a real risk.”

Major central banks are rushing to contain runaway consumer price inflation that has largely been prompted by fallout from key energy supplier Russia’s invasion of Ukraine.

State energy giant Gazprom suspended gas deliveries to Germany on a major pipeline on Wednesday.

It was the latest in a series of supply halts that have fuelled Europe’s energy crisis and sent gas and electricity prices soaring before the peak-demand winter.

– Sentiment takes a hiding –

Wall Street’s three main indexes fell for a third straight day Tuesday to sit at a one-month low, despite healthy data on US consumer sentiment and job openings.

Investor sentiment took a hiding after Fed chief Jerome Powell warned last Friday that the US central bank would need to tighten policy much more to tackle sky-high inflation.

“Inflation remains the key issue, with commentary from both the Fed and ECB serving to highlight the fact that controlling prices will remain the central target irrespective of economic suffering,” IG analyst Joshua Mahony told AFP.

“A drawn out period of higher costs, higher wages, and lower demand point towards further downside for equity markets,” he noted.

Traders are now awaiting the release of US job-creation figures on Friday for a better idea about the state of the economy.

– Key figures at around 1130 GMT –

London – FTSE 100: DOWN 1.1 percent at 7,279.75 points

Frankfurt – DAX: DOWN 0.4 percent at 12,912.99

Paris – CAC 40: DOWN 0.7 percent at 6,168.14

EURO STOXX 50: DOWN 0.5 percent at 3,545.14

Tokyo – Nikkei 225: DOWN 0.4 percent at 28,091.53 (close)

Hong Kong – Hang Seng Index: FLAT at 19,954.39 (close)

Shanghai – Composite: DOWN 0.8 percent at 3,202.14 (close)

New York – Dow: DOWN 1.0 percent at 31,790.87 (close)

Euro/dollar: DOWN at $0.9996 from $1.0015 on Tuesday

Pound/dollar: DOWN at $1.1629 from $1.1656

Euro/pound: UP at 85.95 pence from 85.92 pence

Dollar/yen: DOWN at 138.71 yen from 139.00 yen

West Texas Intermediate: DOWN 2.7 percent at $89.16 per barrel

Brent North Sea crude: DOWN 3.3 percent at $96.00 per barrel

burs-rfj/lcm

US life expectancy drops for 2nd straight year, due to Covid

Life expectancy for Americans dropped in 2021 for the second straight year — the biggest two-year decline in a century — notably due to the Covid-19 pandemic, US health officials announced Wednesday.

US life expectancy at birth dipped by nearly a full year from 2020 to 2021, to 76.1 years, the lowest average since 1996, according to provisional data from the Centers for Disease Control and Prevention (CDC).

By comparison, Americans in 2020 were expected to live 77 years, a sharp drop from the 78.8 years in 2019.

“The declines in life expectancy since 2019 are largely driven by the pandemic,” said the CDC’s National Center for Health Statistics.

Coronavirus-related deaths accounted for three quarters of the drop in 2020, and about half of the decline in 2021, it said.

Some 15 percent of the 2021 slide could be attributed to deaths from accidents or unintentional injuries, notably drug overdoses.

The sharpest decline in life expectancy last year occurred among Native Americans and Alaska Natives, at 1.9 years, followed by white Americans (1.0) and Black Americans (0.7), according to the CDC.

Life expectancy for Native Americans was estimated at a mere 65.2 years in 2021, compared to 70.8 years for Black Americans and 76.4 years for white Americans.

Health officials also noted the growing gap in life expectancy between men and women, a difference which widened from 5.7 years in 2020 to 5.9 in 2021 — the largest gap since 1996. 

American women in 2021 had a life expectancy of 79.1 years, compared to 73.2 years for men.

Covid-19 was the third-leading cause of death in the United States last year, just as it was in 2020, after heart disease and cancer, according to a previous CDC report.

More than 1.04 million people with Covid-19 have died in the United States since early 2020.

After a peak in early 2022, Covid-related US deaths have dropped, although the country still records about 400 such deaths per day. 

Eurozone inflation jumps to new record 9.1%

The eurozone inflation rate hit a new record in August, official data showed on Wednesday, increasing pressure on the European Central Bank to hike rates to tame Ukraine war-fuelled prices.

Driven by soaring energy prices caused by Russia’s invasion in Ukraine, the yearly inflation rate in the 19-country single currency area reached 9.1 percent, its highest since records began, according to Eurostat.

Consumer prices had accelerated to 8.9 percent in July.

The president of Germany’s powerful federal central bank, Joachim Nagel, immediately declared that the ECB should plan for a “strong rise in interest rates for September”.

“Otherwise, inflation expectations could become permanently entrenched above our target of two percent,” he warned.

The headline rate has been rising since November 2021, amid global supply chain stresses. War erupted in Ukraine in February and the European summer was marked by a drought that helped force up food prices.

The ECB is expected to raise interest rates at its next meeting on September 8, after first increasing them in July for the first time in a decade. Rates had been kept low as Europe emerged from its coronavirus slump.

France, which has moved to cap energy prices saw the lowest rate within the eurozone, with 6.5 percent in August, according to Eurostat. 

But powerhouse Germany was high on 8.8 percent, Italy saw nine percent and Spain 10.3. 

Russia’s neighbours on the Baltic, Estonia, Lithuania and Latvia suffered the most, at 25.2 percent, 21.1 and 20.8 respectively.

Economist Jack Allen-Reynolds of Capital Economics warned that the eurozone inflation rate could hit 10 percent by the end of the year, even if the bank hikes rates.

“The balance of probabilities is shifting towards a 75 basis points hike next week,” he said. The ECB raised rates by 50 basis points in July, from a zero interest rate to 0.5 percent.

– Slam on the brakes? –

For Bert Colijn, a senior economist at the bank ING, the increase in the price of goods contained within the broader inflation rate should worry observers as much as the hikes in energy. 

“The increase from 4.5 percent to 5 percent was much larger than expected and fuels worries about second-round effects from the input cost shock lasting longer,” he said.

But he noted that wage growth data for the second quarter of the year — salaries rose only 2.1 percent — suggested that Europe was tightening its belt already.

“As the economy is slowing rapidly –- and perhaps already contracting at this point — the question is how much the ECB needs to slam the brakes,” he said.

“Another hike of at least 50 basis points in September seems to be a done deal, with the hawks pushing for 75 basis points,2 he said.

“The big question is how the ECB will respond after this, if indeed signs of economic distress become more apparent, and inflation remains highly driven by supply-side factors.”

Among the items in the eurozone inflation basket, energy prices once again experienced the highest annual increase in August, although they slowed slightly to 38.3 percent compared to 39.6 in July. 

Food prices including alcohol and tobacco increased by 10.6 percent, from 9.8 in July. Industrial goods and services increased by five percent and 3.8 respectively, also accelerating compared to the previous months.

Tributes from West as Gorbachev dies at 91

The death of Mikhail Gorbachev triggered an outpouring of tributes from Western leaders on Wednesday but reaction was muted in Russia, where many blamed the last Soviet leader for the loss of the country’s status as a global superpower.

Gorbachev, who changed the course of history by triggering the demise of the Soviet Union and was one of the great figures of the 20th century, died on Tuesday aged 91. 

Russian news agency reports said he had died in a central Moscow hospital “after a serious and long illness”.

Gorbachev, in power between 1985 and 1991, helped bring US-Soviet relations out of a deep freeze and was the last surviving Cold War leader.

His life was one of the most influential of his times, and his reforms as Soviet leader transformed his country and allowed Eastern Europe to free itself from Soviet rule.

The changes he set in motion saw him lionised in the West — he won the Nobel Peace Prize in 1990 — but also earned him the scorn of many Russians after the country was plunged into economic chaos and saw its international influence decline.

President Vladimir Putin, who called the Soviet collapse the greatest geopolitical catastrophe of the 20th century, has spent much of his more than 20-year rule reversing parts of Gorbachev’s legacy.

By cracking down on independent media and political opposition, critics say, Putin has worked to undo Gorbachev’s efforts to bring “glasnost”, or openness, to the Soviet system.

And with the launch earlier this year of a military campaign in Ukraine, he has sought to reassert Russian influence in one of the countries that won its independence when the Soviet Union fell apart.

– ‘One-of-a-kind’ –

In a letter of condolences published by the Kremlin, Putin said Gorbachev “was a politician and statesman who had a huge impact on the course of world history” but said little of his political accomplishments.

Kremlin spokesman Dmitry Peskov told Russian news agencies it was not yet clear if a state funeral would be held and that a decision would be made later based on the family’s wishes.

On the streets of Moscow many Russians refused to comment on his death, with one muttering that he was “a traitor” and a young Russian asking who he was.

But in the West, where Gorbachev was regarded fondly and affectionately referred to as Gorby, he was hailed as an iconic figure.

US President Joe Biden credited Gorbachev with having “the imagination to see that a different future was possible and the courage to risk his entire career to achieve it”.

“The result was a safer world and greater freedom for millions of people,” he said.

British Prime Minister Boris Johnson said Gorbachev’s “tireless commitment to opening up Soviet society remains an example to us all,” while UN chief Antonio Guterres called him “a one-of-a-kind statesman” who “did more than any other individual to bring about the peaceful end of the Cold War”.

French President Emmanuel Macron praised Gorbachev as a “man of peace whose choices opened up a path of liberty for Russians,” and former German chancellor Angela Merkel said he demonstrated how “one single statesman can change the world for the better”.

Gorbachev was best known for defusing US-Soviet nuclear tensions in the 1980s as well as bringing Eastern Europe out from behind the Iron Curtain.

He won the Nobel Peace Prize for negotiating a historic nuclear arms pact with US leader Ronald Reagan, and his decision to withhold the Soviet army when the Berlin Wall fell a year earlier was seen as key to preserving Cold War peace.

He was also championed in the West for spearheading reforms to achieve transparency and greater public discussion that hastened the breakup of the Soviet empire.

He spent much of the past two decades on the political periphery, intermittently calling for the Kremlin and the White House to mend ties as tensions soared to Cold War levels after Russia annexed Crimea in 2014 and launched the offensive in Ukraine earlier this year.

– Backed Crimea annexation –

Gorbachev had supported the Crimea annexation, saying that most people in the peninsula “wanted to be reunited with Russia”.

He made no public statements on Russia’s military action in Ukraine, though his foundation called for “an early cessation (to) hostilities and immediate start of peace negotiations”.

He spent the twilight years of his life in and out of hospital with increasingly fragile health and observed self-quarantine during the pandemic. 

He remained a controversial figure and had a difficult relationship with Putin.

Many Russians still look back fondly on the Soviet period, and Putin leans on its achievements to buttress Russia’s claim to greatness and his own prestige.

As the USSR collapsed, Gorbachev was superseded by the younger Boris Yeltsin, who became post-Soviet Russia’s first president. 

From then on, Gorbachev was relegated to the sidelines, devoting himself to educational and humanitarian projects. 

– Supporter of free press –

He made a disastrous attempt to return to politics and ran for president in 1996 but received just 0.5 percent of the vote.

An early supporter of Russia’s leading independent newspaper Novaya Gazeta, founded in 1993, he donated part of his Nobel winnings to help it buy its first computers. 

But the newspaper, like Russian independent media across the board, came under increasing pressure under Putin.

Novaya Gazeta, whose chief editor Dmitry Muratov last year won the Nobel Peace Prize, suspended publication in late March after the military intervention in Ukraine.

In a tribute published after Gorbachev’s death, Muratov hailed him as a man who “put human rights above the state, and valued a peaceful sky more than personal power”.

Russia's Gazprom halts pipeline gas flow in new jitters for Europe

Russian energy giant Gazprom suspended gas deliveries to Germany on a major pipeline on Wednesday, the latest in a series of supply halts that have fuelled an energy crisis in Europe.

Gazprom said supplies via Nord Stream 1 were “completely stopped” for “preventative work” at a compressor unit, shortly after European gas network operator ENTSOG announced that deliveries had ceased.

Gazprom has also said it would suspend gas supplies to France’s main provider Engie from Thursday after it failed to pay for all deliveries made in July.

The latest stop comes as European countries have faced soaring energy prices since Russia invaded Ukraine in late February and subsequently curbed its gas deliveries to the region.

Germany, which is heavily dependent on Russian gas, has accused Moscow of using energy as a “weapon”.

But Gazprom has said the three-day maintenance work was “necessary” and had to be be carried out after “every 1,000 hours of operation”.

Germany’s Federal Network Agency chief Klaus Mueller has called it a “technically incomprehensible” decision, warning that it was likely just a pretext by Moscow to wield energy supplies as a threat.

Experience shows that Moscow “makes a political decision after every so-called maintenance”, he said, adding that “we’ll only know at the beginning of September if Russia does that again”. 

– ‘Much better position’ –

With winter around the corner, European consumers are bracing for huge power bills. Some countries like France have warned that rationing is a possibility.

The European Union is preparing to take emergency action to reform the electricity market in order to bring galloping prices under control, with energy ministers scheduled to hold extraordinary talks next week.

Asked if gas supplies would resume after the three-day works were completed on Saturday, Russian government spokesman Dmitry Peskov said “there is a guarantee that, apart from technical problems caused by sanctions, nothing interferes with supplies”.

Western capitals “have imposed sanctions against Russia, which do not allow for normal maintenance, repair work”, he added, in what appeared to hint at a replay of an earlier round of start-stop rigmarole.

Gazprom had already carried out 10 days of long-scheduled maintenance works in July. While it restored gas flows following the works, it drastically dwindled supplies just days later, claiming a technical issue on a turbine.

The Russian company insists that a key turbine could not be sent to Russia because of sanctions on Moscow. But Germany, where the turbine was located, has said Moscow was itself blocking the component’s delivery to Russia.

An official at Gascade, which operates the distribution network within Germany, also viewed Gazprom’s latest actions sceptically.

“In July, it was regular maintenance planned for a long time by Nord Stream 1, this time it was not planned and we don’t know what is behind this operation,” the official said on condition of anonymity.

A day ahead of the new shutdown, Chancellor Olaf Scholz said Germany was now “in a much better position” in terms of energy security, having achieved its gas storage targets far sooner than expected.

Germany’s gas storage tanks were now almost at 85 percent of capacity, said Mueller, assessing that “Germany is better prepared for the new ‘maintenance’ by Nord Stream”. 

Europe as a whole was also getting a march on filling its gas storage tanks. On Sunday, storage levels were already at 79.9 percent of capacity in the EU.

– ‘Gas emergency’ –

At the same time, fears over throttled supplies have also driven companies to slash their energy usage.

Germany’s industry consumed 21.3 percent less gas in July than the average for the month from 2018 to 2021, said the Federal Network Agency.

Mueller has said such pre-emptive action “could save Germany from a gas emergency this winter”.

And Europe’s biggest economy was already racing to turn its back on Russian gas. 

At the German coastal city of Lubmin, where Nord Stream 1 comes onshore, plans are already well underway for the switch to liquefied natural gas (LNG).

The LNG, transported in by ships, will arrive at Lubmin’s industrial port and be converted back into gas and pumped into Gascade’s distribution network, which has so far been used to funnel Russian gas around the country.

“We expect to be able to inject gas into the distribution network on December 1,” said Stephan Knabe of Deutsche ReGas — the company managing the LNG project.

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