“A rapid gas embargo would lead to production losses, shutdowns, further deindustrialisation and long-term job losses in Germany,” said Rainer Dulger, president of the Confederation of German Employers’ Unions, joint statement on Monday to the German news agency dpa.
The statement comes as European leaders discuss possible new energy sanctions against Russian oil following the April 7 decision to ban Russian coal imports from August. Ukraine’s leaders say Russia’s energy export revenues are financing Moscow ‘s disastrous war against Ukraine and must end.
This will not be easy to do.
A chemical plant of the Evonik steam company in Wesseling, near Cologne, Germany, on April 6. German companies and unions warn that banning all energy imports from Russia due to the war in Ukraine would have unpredictable consequences for the country’s economy. (Martin Meissner / The Associated Press)
The 27 nations of the EU get about 40 percent of their gas from Russia and about 25 percent of their oil. Gas would be the hardest thing to do without it, energy analysts say, as most of it comes from Russia via pipeline and supplies of liquefied natural gas, which can be ordered by ship, are limited amid strong global demand.
Germany, a major Russian hub and importer of Russian gas, has so far resisted an immediate shutdown, saying it intends to phase out Russian oil by the end of the year and most Russian gas imports by mid-2024.
The EU Executive Committee has outlined steps to reduce Russian gas consumption by two-thirds by the end of the year through the use of more natural gas from Norway and Azerbaijan, the import of more liquefied natural gas, the acceleration of wind growth and projects and the intensification of conservation efforts.
German Vice Chancellor Robert Habeck said in an interview with the Funke media group that “an immediate gas embargo would jeopardize social peace in Germany.”
People lay on the ground to symbolize those killed in the war in Ukraine, part of a demonstration outside the Reichstag building in Berlin on April 6. The protesters demanded a ban on Russian energy imports. (Markus Schreiber / The Associated Press)
Despite extensive financial sanctions against Russian banks and individuals, the EU continues to send about $ 850 million a day to Russia for oil and gas, even as EU governments condemn the war in Ukraine. Gas intensity companies include producers of glass, metals, ceramics and chemicals. Industry officials say that in many cases gas would be impossible to replace in the short term.
Analysts say Russian crude oil would be easier to replace with natural gas, but that a boycott would continue to lead to higher energy prices that would hit consumers already facing a record 7.5% inflation in the EU.
