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- UK plans to cut pipelines to EU if Russia gas crisis intensifies - FT
UK plans to cut pipelines to EU if Russia gas crisis intensifies - FT
The UK is ready to cut off gas supplies to mainland Europe in case the Kingdom is hit by severe shortages under an emergency plan, the Financial Times (FT) reported on Tuesday.
Key takeaways
Britain would cut two-way interconnectors to Belgium and Netherlands in event of severe shortages
A cut off of so-called interconnector pipelines would be among the early measures under the UK’s emergency gas plan, which could be triggered by National Grid if supplies fall short in the coming months.
European gas companies have appealed to the UK to work with the EU and warned shutting off interconnectors could backfire if prolonged shortages occur.
National Grid said the plan was tested annually, adding that the latest exercise would “reflect the circumstances” as Russia curtails gas exports to Europe.
Market reaction
With the UK-Europe relations already sour, thanks to the Brexit deal, the latest tensions surrounding the gas supplies will only make matters worse.
At the time of writing, EUR/USD is testing daily lows just above 1.0500 while GBP/USD is paring back gains to trade around 1.2200, still up 0.16% on the day.
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