Germany has activated an emergency plan to deal with disruptions to its natural-gas supply after Russian President Vladimir Putin demanded payment in rubles.
Russian gas accounted for more than half of Germany's gas imports in the first quarter of 2022, according to a report.
Germany is in the early warning phase of its emergency plan, with Berlin calling for all consumers to conserve energy and reduce consumption. The country could start rationing gas in the last stage of the plan if the situation gets worse.
There are no supply issues at the moment. Robert Habeck, the German economy minister, said in a statement on Wednesday that they need to step up their preventive measures.
On Monday, the Group of Seven rejected Putin's demands for gas supplies to be paid in rubles, citing a violation of existing agreements. On Thursday, Putin signed a decree requiring countries that import Russian gas to pay in rubles from April 1 and threatened to cancel existing contracts if they don't comply.
Putin told the German Chancellor that the country can pay for gas in euros, according to a German government spokesman.
The spokesman said that Scholz did not agree to the procedure in the conversation, but asked for written information to better understand it.
The German economy would be badly affected by gas rationing.
Industry will be first in line for supply cuts. Business leaders and unions told the German media outlet that the move could lead to job losses.
The leader of the union at the Ludwigshafen site of the world's largest chemical maker told the employees that they would have to work shorter hours or be laid off.
The president of Germany's IG BCE chemical workers said that the consequences would be reduced work hours and job losses.
Last week, Germany ended its use of Russian gas in 2024, according to Habeck.
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