Sweden to offer liquidity guarantees to energy companies

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Sweden plans to offer liquidity guarantees to energy utilities to help avert a financial crisis after Russia decided to keep the Nord Stream gas pipeline shut indefinitely.

The Swedish government is developing a package aimed at giving energy companies “the breathing room that is needed,” Prime Minister Magdalena Andersson told reporters in Stockholm on Saturday.

“If we do not act, there is a serious risk of disruptions in the financial system, which in the worst case could lead to a financial crisis,” Andersson said, according to Reuters.

The guarantees will amount to “hundreds of billions” of kronor and be in place before stock markets close on Monday, Andersson said.

In Finland, “similar preparations are already well underway,” Finnish Finance Minister Annika Saarikko said in a tweet.

EU energy ministers are scheduled to meet on September 9 for an emergency summit.