The fight between India and Germany increased, there is a possibility of serious consequences soon – न्यूज़लीड India

The fight between India and Germany increased, there is a possibility of serious consequences soon


Quarrel increased to the level of diplomacy

According to officials familiar with the matter, the German government-backed gas company has reduced the supply of natural gas to India, after which an appeal has been made to resolve the dispute through talks between the diplomats of the two countries amid the flourishing dispute. An official familiar with the matter said on the condition of anonymity that, while India has now started talks with Russia to fill the gap in supply cuts, the matter has so far been kept private.

What is the matter really?

What is the matter really?

Germany’s Securing Energy for Europe GmbH supplies gas to Indian company GAIL India Limited, but from the month of May this year, the supply of gas started decreasing. Germany says sanctions imposed on Russia have made it impossible for a German gas company to receive gas cargo from Russia. At the same time, according to a report in Economic Times, a source said that, amid this disruption, India is suggesting that the German company should make alternative supplies from its portfolio to fulfill the contract with the Indian company, But Germany is not getting ready for this.

Why has this crisis arisen?

Why has this crisis arisen?

Since the Russian invasion of Ukraine, the rise in the prices of natural gas all over the world has worsened the condition of developed countries, especially Germany. So, Germany has cut gas supply to India to ease the gas crisis this winter, while India has been paying record amount to get gas from Germany and India is still paying exorbitant price for gas supplies. ready for. At the same time, after the increase in prices, some suppliers of South Asia have started supplying to the country from where they are getting more money and they have canceled the long scheduled deliveries, which also affected India. Is.

German company double game

double game of germany company

The Singapore arm of German state-owned gas company SEFE said in September that it could not fulfill its long-term LNG contract with GAIL. The German company SEFE, a former PJSC business of the Russian gas-oil company Gazprom, is now under the control of the German government and has paid a small penalty of 20% of the value of the shipment, as per the contract terms. Which is a fraction of the value of current spot gas prices in Europe, but is proving to be a big gap for GAIL. According to the Economic Times report, a spokesperson for the German company SEFE said that, “SEFE and its subsidiaries, SM&T and SM&T Singapore have been significantly affected by sanctions against Russia, thus affecting the supply of both SEFE Group and GAIL.” Huh.” “SEFE and GAIL are addressing this issue together under their contractual agreements.”

Trying to find a diplomatic solution?

Trying to find a diplomatic solution?

According to the Economic Times, spokespersons for GAIL, Germany’s Ministry of Economy and Foreign Affairs and India’s Ministry of External Affairs all declined to comment on the issue. At the same time, people related to the matter said that the objective is to find a diplomatic solution, but pre-arbitration talks are also happening between SEFE and GAIL. However, in the meantime, India has also started talks with Russia to replace German gas. India’s Foreign Minister Subrahmanyam Jaishankar visited Moscow earlier this week, according to people familiar with the matter. At the same time, GAIL has cut gas supply to its customers and also reduced production at its petrochemical plant due to the shortage. GAIL director Rajesh Kumar Jain said SEFE has canceled 17 cargoes to be sent to India since May. Let us tell you that according to GIIGNL data, there is a contract between GAIL and the German company to buy LNG gas till the year 2041, under which the German company has to supply 2.5 million tonnes of gas to India every year.

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