According to the German government, Germany is preparing for a sudden dip in natural gas supplies from Russia as Vladimir Putin's government threatens to slash pipeline energy. Germany's economy minister, Robert Habeck, has said that his country has initiated an early-warning contingency plan that hopes to insulate country from any sudden Russian decision to cut down the supplies. ( https://abcnews.go.com/Business/wireStory/germany-triggers-warning-gas-amid-russian-ruble-demand-83756182 )

The German government's announcement comes after Russia's government demanded rubles as payment for gas exports last week. At present, German and Russian companies are transacted in euros. After Russia invaded Ukraine and Western sanctions, countries have been barred from paying in rubles for any transaction with Russia.

Putin said last week that "unfriendly" nations would be asked to pay for gas in rubles. Gas prices spiked after the demand from Putin.

According to experts, Russia is trying to prop up the value of rubles after the currency sank to lifetime lows following sanctions by the Western powers after the invasion. The ruble has recovered much of its losses in recent days.

But the European countries are unlikely to yield to the Russian demands and hence the stance by Germany, fearing the worst. Germany's Finance Minister Christian Lindner said his government would not be "blackmailed" by Russian demands. ( https://www.cnbc.com/2022/03/29/germany-lindner-putin-should-think-before-asking-for-energy-payments-in-rubles.html )

In the meantime, Poland has announced that it was taking steps to cut dependence on oil imports from Russia by the end of the year. Italy has also refused to pay rubles, saying that it would violate sanctions.

According to experts, almost half of German households depend on natural gas for heating. Germany imports almost 55 percent of its gas from Russia through the Nord Stream pipeline under the Baltic Sea. ( https://www.aljazeera.com/news/2022/3/30/gas-supply-what-will-happen-if-russia-turns-off-taps-for-germany )

By rationing and looking for other energy sources, Germany could manage if Russia turns off the tap, say experts. A group of scholars from the German National Academy of Sciences Leopoldina calculated that the effects of a short-term halt to the supply of Russian gas would be "substantial but manageable." ( https://www.dw.com/en/can-germany-survive-without-russian-gas/a-61294623 )