Russia’s war in Europe is intensifying not just on the battlefield but also in energy markets. Moscow stepped up the use of energy as a weapon by further cutting natural-gas shipments via its biggest pipeline to Europe. The amount of gas at stake is not insignificant — Gazprom is curbing supplies via its Nord Stream pipeline to Germany by 60%, deepening a cut announced earlier this week. That’s on top of a 15% cut in flows to Italy. German Economy Minister Robert Habeck said the move is Russia’s attempt to unsettle the market. And it worked: gas prices once again hurtled higher. For analysts, it shows that European countries —  even those meeting President Vladimir Putin’s demand to pay in rubles — need to start preparing for a world of zero Russian gas and all that that entails.

— John Ainger

What’s Happening

Long-Awaited Trip | Olaf Scholz, Emmanuel Macron and Mario Draghi are all set to make their first post-invasion visit to Ukraine today, along with Romania’s Klaus Iohannis. The visit comes as senior European officials see little chance Russia is willing to ease global food pressures by striking a deal to let Ukraine resume crucial grain exports, saying the Kremlin views the crisis as leverage against Kyiv and its allies.

Crisis Tool | The ECB sought to stave off a resurgent euro-area debt crisis with a promise of a new tool to curb market stress. It involves applying flexibility in reinvesting proceeds from maturing bonds and comes in the wake of a blow out in Italian borrowing costs. Euro-area finance ministers will also discuss recent turbulence in the sovereign-debt market with ECB president Christine Lagarde today in Luxembourg.

Czech Plan | The EU needs to help Ukraine deter Russian aggression, rebuild its economy and show support on its path to membership, Czech Prime Minister Petr Fiala said as his country readies to take over the bloc’s rotating presidency. He also wants to focus on improving energy security, reinforcing European defense, boosting economic resilience and strengthening democratic institutions.

Fortifying NATO | NATO allies could follow Germany’s plan to pre-assign more troops to the eastern flank instead of deploying them there permanently. The approach is likely to be discussed by NATO defense ministers meeting in Brussels today. Meanwhile, Turkey continues to dig its heels in over Sweden and Finland’s membership to the alliance, with accession talks unlikely to start in time for a leaders’ summit at the end of June.

Disinformation Code | The Commission will today tell tech companies that they should review the prevalence of deep fakes on their platforms and share information on foreign interference as part of the EU’s “Code of Practice on Disinformation,” according to a draft we’ve seen. If companies don’t do enough to clean up their act, they could face fines up to 6% of their annual revenue. 

Crunch Time| The EU’s data protection law is facing “crunch time,” according to a prepared speech that Commission Vice-President Vera Jourova will deliver in Brussels today. The EU’s General Data Protection Regulation needs a revamp to ensure it addresses growing attacks on citizens’ privacy, Jourova will say, amid tensions among regulators about the time it takes some authorities to complete EU-wide probes.

In Case You Missed It

Brexit Bill | The EU is restarting legal proceedings against the UK as Brussels prepares for a drawn-out fight over London’s move to override part of the Brexit deal. Planned legislation announced earlier this week is a breach of international law, according to Maros Sefcovic, the EU’s chief Brexit negotiator. He added that Britain’s proposal to eliminate the role of the European Court of Justice in governing disputes was a further breach.

Carbon Deal | The three biggest political groups in the European Parliament reached an agreement on a sweeping reform of the EU’s carbon market in a bid to resolve a spat that derailed the overhaul and threatened to delay talks on a broader climate package. The deal centers on when industry will lose their free allowances to emit carbon dioxide.

Rubber Woes | Europe’s demand for rubber to make tires and other products is destroying tropical forests across Africa, and proposals from Brussels to limit environmental damage currently do little to address the problem, according to a new study. Click here to read about the extent of the damage.

German Pay | Germany’s biggest union won a 6.5% pay rise — the biggest in 30 years — for steel workers in the northwest of the country, setting the stage for upcoming talks in the metals- and electronics industries. The 18-month deal for about 68,000 steel-industry employees includes one-off payments of 500 euros for June and July.

Summer’s Early | Even under the shade of large umbrellas at Terraza Colon cafe in the heart of Madrid, it was hot. The tables were empty. Here’s how extreme temperatures could make their way north in the coming days.

Chart of the Day

Ukraine has suffered $4.3 billion in damage to farmland, machinery and livestock as a result of Russia’s invasion, according to the Kyiv School of Economics. About half of the “already immense” destruction from the war comes from pollution caused by mines and unharvested crops, according to a report by authors Roman Neyter, Hryhorii Stolnikovych and Oleg Nivievskyi. Almost a quarter of the total — $926 million — stems from damage to farm machinery, they write. 

Today’s Agenda

All times CET.

• 11:30 a.m. European Parliament President Roberta Metsola and Czech Prime Minister Petr Fiala hold news conference
• 12:45 p.m. Press conference by Vice President Vera Jourova and Commissioner Thierry Breton on disinformation
• 3 p.m. NATO defense ministers meet in Brussels, Jens Stoltenberg holds news conference
• 3 p.m. Commission President Ursula von der Leyen receives Slovenian Prime Minister Robert Golob
• 3:15 p.m. Justice Commissioner Didier Reynders speaks at EDPS event
• 4 p.m. EU foreign policy chief Josep Borrell in New York to address UN Security Council
• 4:30 p.m. Euro-area finance ministers meet in Luxembourg with news conference

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