Posted 7 сентября 2022,, 14:54

Published 7 сентября 2022,, 14:54

Modified 24 декабря 2022,, 22:38

Updated 24 декабря 2022,, 22:38

The head of the Estonian Cabinet urged enterprises to stop production

The head of the Estonian Cabinet urged enterprises to stop production

7 сентября 2022, 14:54
Estonian Prime Minister Kaja Kallas has addressed the heads of small enterprises with a proposal to stop production, explaining that the country's authorities will not be able to support their business in the winter in the face of rapidly rising energy prices.

Kallas said that the country is not ready to issue loans to support entrepreneurs.

“The state is unable to pay such benefits to entrepreneurs so that they feel it,” Kallas is quoted as saying by REN TV .

Small companies that employ few people would be better off temporarily shutting down their operations for the winter, when energy prices are at their highest, Kallas said.

She called ensuring uninterrupted heating of residents' houses in the winter, as well as protecting enterprises from bankruptcy, a priority for the Estonian authorities.

The Estonian authorities at the same time urged citizens to reduce the consumption of electricity and gas.

Europe had to switch to a drastic savings regime after the start of the military special operation of the Russian Federation on the territory of Ukraine and the introduction of Western sanctions against the Russian Federation. Russia responded by significantly reducing gas supplies to Europe. This led to a sharp jump in energy prices and a spiral of hyperinflation that broke 40-year records in a number of countries.

The Nord Stream gas pipeline, which supplied Russian gas to the EU, was first switched to a partial load mode, and then completely stopped on August 31 under the pretext of a technical malfunction, which is problematic to eliminate due to the sanctions imposed by the EU countries. The Kremlin said that the blame for the reduction in Russian gas supplies to Europe lies with those countries that have imposed sanctions against the Russian Federation.

Earlier, a Finnish manufacturer of toilet paper warned of a shortage in the EU due to the energy crisis.