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Sweden announces emergency guarantees for energy companies | Russo-Ukraine war news

The prime minister says Sweden faces the prospect of a “war winter” due to energy shortages during the war between Russia and Ukraine.

Sweden says it will provide hundreds of billions of dollars in liquidity guarantees to Nordic and Baltic energy companies to avert a financial crisis triggered by Russia’s Gazprom’s closure of its Nord Stream 1 gas pipeline. increase.

Prime Minister Magdalena Andersson has warned that Sweden is facing the prospect of a “winter of war” due to Europe’s energy crisis, and said the exact details of the guarantee have yet to be worked out.

Speaking to reporters on Saturday, Anderson said the guarantee was intended to give the energy group “a much-needed respite room”.

“There is a clear security policy agenda behind Russia’s actions,” she said.

While Moscow accuses Western countries of imposing sanctions on Russia for interfering with routine maintenance of pipelines after it invaded Ukraine, some European Union officials say Russia is using energy as a weapon. I am accusing you of using it.

“Russia’s energy war is seriously impacting homes and businesses in Europe and Sweden, especially in southern Sweden, which is heavily dependent on gas from German electricity prices,” she said. I was.

“This threatens our financial stability. It could lead to serious disruptions in the Nordic and Baltic states if we don’t act soon,” she said.

“At worst, we could end up in a financial crisis.”

The announcement comes after Russia said on Friday it would indefinitely cut off the Nordstream gas pipeline to Germany for what it said was a leaking turbine, deepening Europe’s difficulties in securing fuel for the winter. I’m here.

The closure is expected to push power companies’ production prices even higher when markets open on Monday.

At the same press conference, Finance Minister Michael Dunberg said he would submit a proposal to allow the government to issue credit guarantees, adding that he had notified all parliamentary parties and the president of the country.

Danberg also said Sweden’s decision “ensures financial stability not only in Sweden but throughout the Nordic region”.

The guarantee is expected to go into effect on the Monday before the stock market closes and will cover all Nordic and Baltic parties within the next two weeks.

Sweden’s parliament has convened from summer vacation to vote on the government’s proposal on Monday.

Sweden is experiencing the highest inflation in 30 years and the central bank has hiked rates twice this year, with more sharp hikes expected by the end of the year.

High electricity prices, rising interest rates and sluggish economic growth have dominated the campaign ahead of the September 11 general election.

On Wednesday, Damberg said the government expects $8.36 billion to be available to ease consumers’ pain from record electricity bills this year and next.

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