Sweden to issue guarantees worth ‘billions’ to energy groups – Economy – War in Ukraine
Sweden’s Prime Minister Magdalena Andersson arrives to speak at a press conference in Stockholm, Sweden, September 3, 2022. AFP
Prime Minister Magdalena Andersson warned that Sweden faced the prospect of a “winter of war” and said the exact details of the guarantees remained to be worked out.
The announcement came after Russia said on Friday it was cutting the Nord Stream gas pipeline to Germany indefinitely because of what it said were leaks in a turbine.
The closure is expected to lead to even higher production prices for the electricity companies when the market opens on Monday.
Speaking to reporters, Andersson said the guarantees were aimed at giving energy groups “the breathing space they need”.
She said there was “a clear security policy agenda behind Russia’s actions”.
“Russia’s energy war has serious consequences for Europe and Swedish households and businesses, especially in southern Sweden which is dependent on electricity prices in Germany, which in turn is very dependent on gas,” she said.
“This threatens our financial stability. If we don’t act soon, it could lead to serious disruptions in the Nordics and Baltics,” she said.
“In the worst case, we could end up in a financial crisis.”
Finance Minister Mikael Damberg, speaking at the same press conference, said the Swedish decision would “secure financial stability not only in Sweden but in the entire Nordic region”.
The guarantees were expected to be in place on Monday before the stock market closed and would cover all Nordic and Baltic players within the next two weeks.
Sweden’s Riksdag has been called back from the summer break to hold a vote on the government’s proposal on Monday.
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