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Germany Warns of Lehman-Like Contagion From Russian Gas Cuts

  • Gas emergency level elevated to second-highest ‘alarm’ stage
  • Minister warns that high prices could trigger market collapse
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WATCH: Germany raised the risk level of its national gas emergency plan. Maria Tadeo reports.Source: Bloomberg
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Germany warned that Russia’s moves to slash Europe’s natural gas supplies risked sparking a collapse in energy markets, drawing a parallel to the role of Lehman Brothers in triggering the financial crisis.

With energy suppliers piling up losses by being forced to cover volumes at high prices, there’s a danger of a spillover effect for local utilities and their customers, including consumers and businesses, Economy Minister Robert Habeck said Thursday after raising the country’s gas risk level to the second-highest “alarm” phase.