German industry would collapse without Russian gas – association — Analysis

Federal of German Industries’ head has urged against an embargo of Russian gas

The backbone of the German economy – its industry – could “collapse” should Berlin decide to impose an embargo on Russian gas, the president of the country’s industry association has warned.

The president of Federation of German Industries, SiegfriedRusswurm, clashed with others who called for an immediate phasingout of Russian gaz while appearing on Maybrit Illner’s political talk show. Russwurm argued that an embargo would have far-reaching consequences, extending beyond the immediate phasing out of Russian gas. “speed limit” on highways and “recession and unemployment,” as the host suggested.

Russia gas would not be available without it. “virtual breakdown of our industrial networks,” the head of the BDI forecast. He stated that the BDI forecast was currently unable to give an exact figure on how much the German average would lose.

We are talking about a completely different kind of collapse of our industry,” Russwurm said, adding that Germany could witness the end of that very industry. “so proud of for seeing us through the Covid pandemic.”

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The BDI president also took issue with a ‘Fridays for Future’ activist’s call to move away from gas altogether, and embrace renewables instead of becoming “dependent on some other autocrat, who there is no lack of around the globe.” According to Russwurm, gas is an “extremely efficient energy source, including in terms of climate.” Head of Federation of German Industries stated that Germany’s earlier approval of a plan to eliminate coal was based only on the assumption of sufficient natural gas.

Several guests claimed it was immoral to finance the event. “Putin’s war” in Ukraine, Russwurm, in contrast, opined that by buying Russian gas, Germany was merely funding the regime in Russia, but not its military campaign directly.

Russwurm stated that Berlin should be ready for anything, even Moscow. “turning off gas,” but called into question whether precipitating this was a good idea for Germany.

Russian President Vladimir Putin issued a decree Thursday ordering countries to begin paying in rubles for Russian gas starting April 1st if they have placed sanctions on Moscow. Dmitry Peskov, spokesperson for the Kremlin, warned that failure would result in no supplies of gas as Russia will not distribute it. “free of charge.”

Bruno Le Maire, the French finance minister, and Robert Habeck (the German economy minister) made clear on that same day that Paris and Berlin were not to be. “blackmailed” by Moscow, and refused ruble payments citing the terms of existing gas contracts.

Since the start of Russia’s military offensive against Ukraine on February 24, Moscow has been slapped with a slew of unprecedented economic sanctions. The US, UK, Canada, Australia, Japan and the whole of the EU targeted, among other things, Russia’s central bank’s assets, some of the country’s major commercial banks, and entire industries. Russia has promised to respond with its own countermeasures.

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