Putin’s Gazprom windfall but Europe is fighting back
Russia’s Gazprom has reported record results despite a barrage of sanctions imposed by the West.
Swathes of cash have continued to pour in for the Kremlin-backed oil giant, as it declared $42bn profit for the first half of 2022.
This has sparked huge dividend payments for shareholders, including $10bn for Vladimir Putin’s Russian government, which holds a majority stake.
But not everything is going Putin’s way. European countries are taking extraordinary measures to combat the looming gas shortage.
Germany’s ‘national effort’ aimed at cutting gas usage by 20% this winter involves switching off hot water in public buildings and limiting room heating to a maximum of 19 degrees this winter – a measure also taken by Spain. Lighting of monuments and public buildings will be switched off, with illumination of shop windows and billboards stopping at 10pm.
German gas storage facilities are topping up ahead of target despite the Russian gas pipeline shutting down repeatedly for ‘routine maintenance’.
In August, Germany got under 10% of its gas from Russia, versus well over half last year, while Britain (and therefore Ireland too) got none for the first time ever.
Even the Finns are being told to prepare for power cuts – and stop using their much-loved saunas. But it’s a lot easier to deal with a gas crisis during the summer. Let’s see how European unity against Putin’s regime holds up when the looming ‘cold war’ really starts to bite.
Cutting-edge savers
Last week we covered some of the odder money-saving tips popping up online to ease the cost-of-living crisis. This week the discussion continued with plenty more useful tips emerging in a Europe-wide money-saving craze. Some of the better ones on Mumsnet, for example, included: showering at the gym, making sure you check the price-per-kilo of loose items like fruit and veg, and turning off appliances instead of having them on ‘standby’.
Another poster agreed that using less than the recommended amount of cleaning products can save cash, adding, ‘Use washing powder, not liquid (better for the machine anyway) and half the amount of washing powder it says unless it’s really dirty stuff’. Another poster recommended: ‘Cut dishwasher tablets in half!’ [I actually tried that this week and it seems to work just as well.]
‘And don’t bother with fabric conditioner either – you honestly won’t notice the difference.’
UK inflation ricochet?
The inflation rate is predicted to hit 22% this winter in Britain, according to leading bank Goldman Sachs. Yikes!
It expects inflation there – already in double digits – to double again in 2023. Worryingly, it is being driven upwards by factors that are little different here – namely gas prices, a weak currency and rising food costs.
Ireland is on the same gas grid as the UK and is treated as part of the same supply network by many retailers. If inflation that horrendous hits the UK, can it hit that sort of level here?
Economist Alan McQuaid, inset right, thankfully, says no – kind of. He predicts inflation will still hit ‘double digits’ here in the coming months but it won’t be ‘as bad in the UK’ even if it tops 20% there. Unfortunately, he’s sticking to his prediction of two looming 0.5% mortgage rate hikes – starting on Thursday.
$10m crypto oopsie
If $10m was mistakenly sent to your account, would you keep the money? Many people might feel they’d get away with it – or at least not suffer any financial penalty if caught out. But one Australian family had to pay back all $10m – plus legal costs and interest – in a salutary tale. Crypto.com, which uses film star Matt Damon in its advertising, mistakenly transferred almost $10.5m to Thevamanogari Manivel instead of a $100 refund.
When the highprofile trader tried to get its money back, $1.35m had already been spent on a luxury five-bed pad. After legal action against Ms Manivel and her sister Thilagavathy Gangadory, they won their money back, plus tens of thousands of dollars in interest and legal costs as the siblings’ financial dream turned into a nightmare.