(Bloomberg) -- The European Commission doesn’t expect Russia to restart a key natural gas pipeline this week, a senior official said, the clearest indication yet that the bloc is bracing for the worst.

“We don’t expect that it comes back,” Budget Commissioner Johannes Hahn said Tuesday. “We are working on the assumption that it doesn’t return to operation. And in that case certain additional measures need to be taken.”

Russia is scheduled to resume flows through the Nord Stream pipeline on July 21 after planned maintenance. Still, concerns are growing from Brussels to Berlin that the link may not return, especially after Moscow slashed flows last month, citing delays because of sanctions.

A halt of Russian gas supplies to the EU could have a catastrophic impact on industry and countries are scrambling to find alternative supplies. Germany is particularly dependent on Russian gas and already the squeeze on supplies has prompted major utility Uniper SE to call for a government rescue.  

Read: Russian Gas Halt Risks 1.5% Cut to EU GDP in Worst Case 

The commission, the EU’s executive arm, is due to unveil on Wednesday a plan for coordinated gas demand reduction to mitigate the impact of a potential cut-off by Moscow. It is considering a set of recommendations to member states, including voluntary reductions to heating and cooling use and some market-based measures. The Commission may also seek the right to force consumption cuts if needed later on.

 

 

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