© Reuters FILE PHOTO: Swedish Finance Minister Michael Damberg attends a press conference to offer relief to families affected by high electricity prices in Rosenbad, Stockholm, Sweden January 12, 2022. Johan Jepsen / TT News Agency / REUTERS / File photo
STOCKHOLM/HELSINKI (Reuters) – Finland and Sweden announced on Sunday. Russia’s Gazprom (MCC) has announced plans to provide billions of dollars in liquidity guarantees after shutting down the Nord Stream 1 gas pipeline, worsening Europe’s energy crisis.
Finland plans to provide 10 billion euros ($9.95 billion) and Sweden plans to provide 250 billion Swedish crowns ($23.2 billion) in liquid guarantees.
Swedish Finance Minister Michael Damberg said on Sunday that the bailout will last until March next year in Sweden and will cover all Nordic and Baltic countries for the next two weeks only.
Without the government guarantee, electricity producers could have fallen into “technical bankruptcy” on Monday, Damberg said.
Low gas output from Russia, both before and after its invasion of Ukraine in February, has increased European prices by 400% in the past year.
The rapid rise in electricity prices has led to paper losses on electricity companies’ futures contracts, forcing them to find money to post more collateral with the exchange.
($1 = 10.7633 Swedish kroner)
($1 = 1.0049 EUR)