BAKU, Azerbaijan, July 28. For countries in Central and Eastern Europe, a loss of Russian supplies has raised the now very real risk of gas shortages, Trend reports with reference to UK-based Capital Economics research and consulting company.
“Governments in CEE have taken steps in recent weeks to shore up gas supplies and reduce demand. The deal agreed by the EU this week for member states to cut their gas consumption by 15 percent should help to fill up storage, although there are a number of exemptions. We don’t expect energy rationing in CEE. But the IMF and IEA have estimated that, in the event of a full gas cut-off from July, countries would face shortages and need to cut gas demand at the start of 2023. Rationing would then probably be needed,” reads the latest report from the company.
Analysts from Capital Economics note that countries most vulnerable to energy rationing include those that are (i) most reliant on Russian gas for their energy needs, (ii) less able to secure alternative supplies and (iii) less able to reduce gas demand.
“Some CEE economies import all of their gas from Russia and these imports account for more than 25 percent of total available energy in Slovakia and Hungary. Most countries have options to replace Russian gas, including sourcing additional supplies and raising LNG imports. Some countries could also raise coal output, particularly Poland and Bulgaria, where coal is a key part of the energy mix,” the report reads.
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