Middle East

Sweden announces emergency guarantees for energy companies | Russia-Ukraine war News

PM says Sweden is dealing with the prospect of a ‘battle winter’ because of an vitality crunch amid the Russia-Ukraine battle.

Sweden has mentioned it will present a number of hundred billion {dollars} in liquidity ensures to Nordic and Baltic vitality firms to avert a monetary disaster sparked by Russia’s Gazprom shutting the Nord Stream 1 fuel pipeline.

Prime Minister Magdalena Andersson warned that Sweden was dealing with the prospect of a “battle winter” due to Europe’s vitality crunch, and mentioned the precise particulars of the ensures remained to be labored out.

Talking to reporters on Saturday, Andersson mentioned the ensures had been geared toward giving vitality teams “the respiration room that’s wanted”.

She mentioned there was “a transparent safety coverage agenda behind Russia’s actions”.

Moscow has blamed sanctions imposed by the West following Russia’s invasion of Ukraine for impeding routine upkeep on the pipeline, however some European Union officers have accused Russia of utilizing vitality as a weapon.

“Russia’s vitality battle is having critical penalties for Europe and Swedish households and firms, particularly in southern Sweden which depends on electrical energy costs in Germany, which in flip could be very depending on fuel,” she mentioned.

“This threatens our monetary stability. If we don’t act quickly it might result in critical disruptions within the Nordics and Baltics,” she mentioned.

“Within the worst-case situation, we might fall right into a monetary disaster.”

The announcement got here after Russia mentioned on Friday it was chopping off the Nord Stream fuel pipeline to Germany indefinitely because of what it mentioned had been leaks in a turbine – deepening Europe’s difficulties in securing winter gas.

The closure is predicted to result in even greater manufacturing costs for electrical energy firms when the market opens on Monday.

Talking on the similar information convention, Finance Minister Mikael Damberg mentioned the federal government will put ahead a proposal that permits it to challenge credit score ensures, including that the entire nation’s parliamentary events and the speaker had been knowledgeable.

Damberg additionally mentioned the Swedish choice would “safe monetary stability not solely in Sweden, however in your entire Nordic area”.

The ensures had been anticipated to be in place on Monday earlier than the inventory market closing and would cowl all Nordic and Baltic actors inside the subsequent two weeks.

Sweden’s parliament has been referred to as in from its summer time break to carry a vote on the federal government’s proposal on Monday.

Sweden is experiencing its highest inflation in 30 years, and the central financial institution has raised charges twice this yr, with extra steep hikes anticipated earlier than yearend.

Hovering electrical energy payments, rising rates of interest and stalling financial progress have dominated campaigning forward of the final election on September 11.

On Wednesday, Damberg mentioned the federal government anticipated to have $8.36bn accessible to assist ease shoppers’ ache of report electrical energy costs this yr and subsequent.


Source: https://www.aljazeera.com/information/2022/9/3/sweden-to-provide-guarantees-worth-billions-to-energy-companies

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