Germany declares stance on Russian oil and gas

Speaking to CNN on May 2, Finance Minister Christian Lindner said, Virtue will agree to any new European Union (EU) sanctions against Russia. “Germany is ready for new sanctions, including an oil embargo,” Lindner said.

The European Union has agreed to phase out Russian coal imports as part of a fifth wave of sanctions imposed on Russia over its military campaign in Ukraine. However, it is difficult for the EU to reach consensus on the Russian oil embargo despite weeks of negotiations. On May 1, Reuters reported, Hungary once again reiterated its opposition to the Russian oil embargo.

Minister Lindner said he did not want to speculate on whether some EU member states, such as Hungarywould have to be exempt from or stay out of the oil embargo.

“I can guarantee that Germany is willing to reduce oil imports, we know other countries are looking at this question carefully,” he added.

Last year, Russia supplied about 27% of EU oil imports, 40% of Europe’s natural gas. EU leaders have promised to cut Russian gas imports by up to 66% this year and end dependence entirely by 2027.

“We are prepared to be less dependent on Russian energy imports,” said Minister Lindner. We can reduce imports, starting with coal, then oil. It will take longer to become independent from Russian gas, but we will continue, so in the end we will be completely independent from Russia.”

Last week, Russia cut off gas to Poland and Bulgaria because the two countries refused to pay in rubles. Russian President Vladimir Putin requires customers in “unfriendly” countries to open two accounts at Gazprombank – one in euros or USD and the second in rubles, from which payments will be made. gas money.

The majority of Gazprom’s contracts with European customers stipulate payments in euros or dollars. Kremlin ultimatum regarding payments in ruble considered an act of “blackmail” by the Europeans.

Minister Lindner said he expected German companies to abide by the terms of the contract, requiring payment in euros or dollars.

“Germany cannot be blackmailed, we know there is dependence on Russian gas, that’s a fact. We need time to reduce this dependence,” Mr. Lindner told CNN.

Germany has reduced Russian gas imports to 35 percent from 55 percent before Russia launched its military campaign in Ukraine, but said it needs to continue buying from Moscow at least until next year to avoid a deep recession.

German gas distributor Uniper says it is not possible to deal with a lack of Russian gas in the short term, because that would have significant consequences for the German economy.

Germany’s central bank said last week that an abrupt halt to imports would push the economy into a deep recession. According to analysis by the top 5 economic institutes in Germany, around 550,000 jobs and 6.5% of annual economic output could be lost this year and next.