A possible embargo on gas from Russia because of the Ukraine conflict is being discussed controversially. Experts sound the alarm.
BRUSSELS – In light of the debate over a possible gas embargo against Russia during the Ukraine conflict* experts sound the alarm. “A full embargo would trigger an immediate recession in Europe, inflation would continue to rise and domestic politics would become even more difficult,” economist Simone Tagliapietra from the Brussels think tank Bruegel told the German Press Agency. Instead, he proposes introducing tariffs on Russian energy in order to put further pressure on Russia.
Raphael Hanoteaux from the organization E3G emphasized that German industry would “lose its competitiveness”. He cites closures in industry and rising prices as the reason.
Gas embargo against Russia because of Ukraine war? Industry heavily dependent on raw materials
From August 2022, an embargo on coal from Russia, which the EU countries agreed on this week, is to apply. Tagliapietra estimates that the EU currently spends 15 million euros a day on coal from Russia. However, spending on gas from Russia is far higher – around €400 million per day – as well as €450 million on oil from the country. That is why Poland and the Baltic countries, for example, are calling for more far-reaching measures.
According to experts, stopping oil supplies from Russia would have significant consequences for the world market. “That would have an effect on the global price, as a lot of the volume would simply become unavailable, but the demand wouldn’t go down,” Hanoteaux said. About half of the oil shipped from Russia to Europe comes through pipelines or ships across the North Sea, which would be difficult to divert, he said. A higher oil price from lower supply would affect not only Europe but also developing countries that are already struggling, Bruegel’s Tagliapietra said.
Gas from Russia: Pharmaceutical industry warns against production stop of important medicines
The German pharmaceutical industry also sees the production of vital medicines endangered by a gas embargo against Russia. According to a survey by the Frankfurter Allgemeine Zeitung, many companies are heavily dependent on energy from Russia.
A significant amount of natural gas is needed, especially to generate electricity and process steam, said Merck CEO Belén Garijo. “Therefore, in the event of a short-term energy and/or gas shortage, we risk the production and supply of essential medicines and critical products for the development and manufacture of biologics and Covid vaccines.”
the The federal government, meanwhile, loses in the population* to consent. Many people in Germany do not agree with the reaction to the Ukraine war. (marv/dpa)*hna.de is an offer from IPPEN.MEDIA.
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