French Energy Minister: We have been ready and preparing for Russian gas cut-off

Dhwani Mehta FXStreet

France's Energy Minister Agnès Pannier-Runacher said on Wednesday that Russia is using gas as a weapon of war "as we anticipated".

Additional quotes

Russia is further reducing French supplies based on that supposition.

France has been ready and preparing for such a scenario.

The country already reducing its exposure to Russian gas imports to 9% - down from roughly double the amount before the Russia-Ukraine conflict.

These comments come after Engie SA, a French multinational utility company, said on Tuesday that Russia’s Gazprom has informed them of a reduction in gas deliveries starting today due to disagreements between the parties over the application of several contracts.

However, later in the day, Russia's gas giant Gazprom announced that it will fully suspend natural gas supplies to Engie from September 1 until it receives all payments for gas in full.

Market reaction

The shared currency is unfazed by the European gas crisis, as EUR/USD is trading near-daily highs of 1.0045, up 0.30% on the day, in anticipation of a 9.0% surge in the Eurozone inflation.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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