Vladimir Putin is “most likely” to cut off gas supplies from Russia to Europe in a move that will trigger rationing and chaos across the continent, France’s economy and finance minister has warned.
European nations must prepare for a “total blackout”, Bruno Le Maire said, as the French government identifies companies that need priority protection and prepares to tell others to shut down or reduce their use.
Speaking at the Rencontres Economiques conference in Aix-en-Provence, Mr Le Maire said: “Let us prepare for a complete shutdown of Russian gas; today it is the most likely option.
“You have to prepare unloading plans as well, we do.
“That means looking at every company, every line of work, in a very specific way. Which companies should reduce their energy consumption and which ones can’t.”
Mr Le Maire pointed to construction and minerals producer Saint-Gobain as the type of company that needs to protect its gas supplies.
The warning comes as the eurozone is poised to sink into recession regardless of whether the Kremlin turns off the gas taps, according to an economist.
Fears are growing among European nations that a deepening energy crisis could send Europe into recession, with blackouts and rationing commonplace by winter.
ING’s Carsten Brzeski said on Thursday that the eurozone’s long-awaited economic recovery had been set aside as none of the risk factors were likely to disappear soon.
ING cut its 2022 growth forecast for the region to 2.6% and predicted a recession at the start of the year.
Mr Brzeski said this forecast did not include a complete shutdown of Russian gas supplies. He added: “The looming recession, not only in the eurozone but also in the US, together with doubts about eurozone debt sustainability, should prevent the ECB from moving beyond initial normalization, keeping rates on hold in 2023.”
A stronger energy backlash is expected as the West continues to arm Ukrainian defenses against a Russian invasion orchestrated by Putin, who said earlier this week that Moscow had only just begun its military campaign in the former Soviet nation.
Speaking at a meeting with leaders of the Kremlin-controlled parliament on Thursday, the Russian president said: “Everyone should know that, in general, we have not started anything serious yet.
“At the same time, we do not reject peace talks. But those who reject them should know that the further it goes, the harder it will be for them to negotiate with us.
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