JPMorgan Chase & Co (NYSE:JPM) has reportedly devised plans to relocate work from Germany to London as big financial companies prepare for possible blackouts in the EU's largest economy.
Following president Vladimir Putin's decision to shut off gas supplies from Russia, finance majors are preparing a number of emergency measures to ensure they continue to trade through winter, reported the Telegraph.
Amidst a deepening energy crisis in Europe, the Russian government announced the crucial Nord Stream 1 gas pipeline would remain shut until Western sanctions, imposed following Russia's invasion of Ukraine, are lifted and the OPEC+ countries agree to reduce crude output.
Market chaos has prompted finance companies to prepare for the worst, with wholesale gas prices surging and stocks slumping, and the euro slipping fell below US$0.99 for the first time since December 2002.
Having moved billions of dollars of assets from London to Frankfurt in the wake of the Brexit vote, JP Morgan could reportedly also use diesel generators to power its offices, or instruct its staff to work from home to reduce energy consumption.
The bank has put several plans in place as a precaution, but might not activate any of them.
Over the weekend, Germany announced additional financial help for households and businesses, along with a windfall tax on energy company profits.
Energy ministers are also due to discuss a European Union-wide tax on electricity generators this Friday, as part of a scramble to curb the cost-of-living crisis.
France's president Emmanuel Macron has endorsed the plan, calling for a "European mechanism".
To boost crude prices, OPEC+, which includes Russia and Saudi Arabia, has decided to cut output by 100,000 barrels per day next month. Brent crude rose 2% on Monday to over US$95 a barrel.