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Germany faces new energy risks


July, 08 2022
watermark Economic news

The energy crisis in Europe continues to develop, reaching unprecedented proportions. First, Russia's military operation in Ukraine dealt a blow to the country's energy and economy, which led to severe disruptions in the supply of raw materials and hydrocarbons to Europe. 


An additional risk for the German energy sector is the current shallowing of the Rhine River in Germany. As it’s known, the river supplies coal for thermal power plants and other needs.


The fact that now the water level in the main transport artery is extremely low suggests that barges will not be able to load thermal coal in full. And this will be a strong blow to the utilities of Germany, as they are already facing a shortage of ships.


Experts note that periodically the Rhine shallows, which restricts navigation along the river and forces to reduce the amount of cargo transported. For example, a barge with a capacity of 2500 tons has the ability to take on board only 1600 tons.


The country's energy companies are gradually starting to prepare for winter, but the prolonged drought observed in Germany in recent weeks may lead to delays in the supply of resources.


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Foreign exchange trading carries a high risk of losing money due to leverage and may not be suitable for all investors. Before deciding to invest your money, you should carefully consider all the features associated with Forex, as well as your investment objectives, level of experience, and risk tolerance.