Germany, Czechia inching towards a gas sharing agreement

The EU sees energy pacts as a buffer against gas supply shocks in the context of a deteriorating relationship with Russia.

Ioana Caloianu

Written by Ioana Caloianu Published on 18.10.2022 09:48:00 (updated on 18.10.2022) Reading time: 2 minutes

Berlin and Prague are getting close to inking a deal on gas sharing in the event of an emergency, Reuters reports, citing Czech Industry Minister Jozef Síkela, iDnes reports.

Síkela made the remarks yesterday during a joint press conference with German Economy Minister Robert Habeck. The Czech dignitary said Germany and Czechia have laid out gas sharing conditions, as well as Germany's compensation for the service, without going into further details.

Since the start of the war in Ukraine this February, the Czech Republic has been weaning itself off Russia gas supplies, and switched to gas coming from west European LNG terminals and Norway, via Germany's transport system.

Síkela also addressed the wider economic situation in the context of the temporary crisis framework, a mechanism approved by the European Commission in the spring, iDnes reports.

"The current crisis is very difficult not only for Czech and German industry, but for the economy of all EU countries," Síkela said, adding that the crisis made it necessary to "extend the validity of the framework and change it so that it is even more flexible and responsive to the situation."

Síkela made similar remarks at an extraordinary meeting of energy ministers last month, when he said “We are in an energy war with Russia, which also strongly affects our industry," as cited by Euractiv.

Speaking at the at the Czech-German Economic Forum, German Economy and Climate Minister Robert Habeck said that Russia was the main culprit of Europe's economic problems. He added that the EU-wide inflation comes as a result of the reduction of gas supplies from Russia, which drove up energy prices as part of Moscow's bid to destabilize the European economic model and destabilize society. "It's all part of the clash with Putin's Russia," Habeck said.

FEATURED EMPLOYERS

Habeck also praised the Czech Republic in general, and its ongoing presidency of the Council of the European Union in particular for its response to the Russian invasion of Ukraine. "Czechia is not one of the largest countries in Europe, but what the Czech government has achieved now is one of the pillars of European cohesion," said Habeck.

Would you like us to write about your business? Find out more