Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

Germany Supports EU Russian Oil Embargo

Germany is ready to Support a European Union (EU) Ban on Imports of Russian Oil, and won't be "blackmailed" by Moscow, into paying for Natural Gas in Rubles. Finance Minister Christian Lindner, said Germany would agree any New Sanctions on Russia with its Partners in the EU. "Germany stands ready for new sanctions, including an oil embargo," he said.

The EU has already agreed to Phase-Out Russian Coal Imports, as part of a Fifth wave of Sanctions, imposed on Russia over its Invasion of Ukraine. But the Bloc has found it much harder to reach Consensus on joining a U.S.-led Embargo on Russian Oil Despite weeks of talks. Hungary reiterated its Opposition to an Oil Embargo again on Monday.

Last year, Russia accounted for about 27% of EU Oil Imports. It also supplied about 40% of Europe's Natural Gas. EU Leaders have already promised to slash Russian Gas Imports by 66% this year, and to Break the Bloc's dependency completely by 2027.

"We have prepared ourselves to be less dependent on Russian energy imports," Lindner said. "We can reduce the imports, starting with coal, then oil. It will take more time to be independent from Russian natural gas imports, but we will continue so in the end we will be completely independent from Russia."

The vast majority of Gazprom's Contracts with its European Customers stipulate Payment in Euros or Dollars. The Kremlin's ultimatum regarding Ruble payments is widely seen as a move to bolster its War Chest and boost the Russian Currency.

German Gas Distributor Uniper said last week, it would continue to pay for its Russian Supplies in Euros, but added that it believed a "payment conversion compliant with sanctions law" was possible. It said it was examining the matter carefully in close coordination with the German Government.

Lindner said he expected Germany's utilities to honor the terms of their contracts, which require payment in euros or dollars. "Germany can't be blackmailed, we know there is a dependency on natural gas from Russia, it is a reality. We need time to reduce this dependency," he said. "This is the situation of the contracts and we do not change because Putin needs rubles for his war chest."

Germany has Reduced its consumption of Russian Gas to 35% of Imports from 55% before the War in Ukraine, but says it needs to keep buying from Moscow at least until next year to avoid a deep Recession.

Germany's Central bank last week, said an abrupt Halt would push the Economy into a Deep Recession. About 550,000 jobs and 6.5% of annual Economic Output could be Lost across this year and next, according to an analysis by Five of the Country's Top Economic institutes.

NYC Wins When Everyone Can Vote! Michael H. Drucker


This post first appeared on The Independent View, please read the originial post: here

Share the post

Germany Supports EU Russian Oil Embargo


Subscribe to The Independent View

Get updates delivered right to your inbox!

Thank you for your subscription