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Traders Get Billions in Backstops: Energy Update

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WATCH: Russia’s closure of Nord Stream left just one major route to deliver natural gas straight to Europe through a pipeline in Ukraine that looks increasingly vulnerable. Stephen Stapczynski reports.Source: Bloomberg
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European governments are creating massive backstops for energy companies to prevent a the gas crunch spilling into a financial crisis.

The U.K. launched a £40 billion ($46 billion) fund to provide energy traders liquidity to deal with massive margin calls, and Denmark followed soon after with similar measures. Sweden and Finland moved first at the weekend, to prevent a “Lehman” moment.