Russian supply cuts are putting companies under stress and forcing governments to face the prospect of major shortages

European gas is nearing its biggest monthly gain since September as cuts in supplies from Russia put companies under stress and force governments to face the prospect of large deficits.

Underlying futures rose 4.7% on Thursday, pushing June gains to over 50%. Deep cuts introduced by Moscow earlier this month quickly tightened the market, eclipsing reduced summer demand and heavy imports of liquefied natural gas. Countries are prioritizing filling storage facilities by winter to avoid power outages.

The impact of the cuts spills over into the economy, limiting growth and hurting companies’ operations. German energy giant Uniper SE is discussing possible government bailouts as PJSC Gazprom has been supplying only about 40% of contracted volumes since mid-June, forcing the utility to buy more expensive fuel on the spot market.

Other utilities may also be at risk. Citigroup Inc. warned that Germany must allow companies to pass on higher costs to consumers, otherwise there is a risk of negative consequences for the European market. The move could exacerbate an already worsening cost-of-living crisis.