Cutting Russian gas supply would be 'catastrophic' for Germany — industry representative

Cutting Russian gas supply would be 'catastrophic' for Germany — industry representative

The cessation of Russian gas deliveries would have a catastrophic effect on the German economy, according to Siegfried Russwurm, president of the country’s biggest industry association BDI.

“The consequences of cutting off Russian gas supplies would be catastrophic,” he told tabloid Bild am Sonntag in an interview published on Saturday evening.

Russwurm added that such a step would deprive the country’s businesses of the fuel, forcing them to shut down production lines.

“A host of companies in this case would be completely cut off from gas supplies,” he said. “In many cases, the affected firms will be forced to stop production, some enterprises may never be able to start it again.”

Berlin believes Russia may stop gas supplies over sanctions imposed on Moscow and the supply of weapons by Germany to Ukraine. Earlier this week, German vice-chancellor and economy minister, Robert Habeck, said the country was not yet ready for a total embargo on Russian gas.

On Wednesday, Russia imposed sanctions on Gazprom’s European subsidiaries including Gazprom Germania, an energy trading, storage and transmission business that Germany placed under trusteeship last month to secure supplies. The sanctions list also includes Gazprom Schweiz AG, Gazprom Marketing & Trading USA, Vemex, Wingas, and EuRoPol GAZ.

Earlier, Ukraine suspended the flow of Russian natural gas to Europe, while blaming Moscow for the disruption. Russian gas had previously been flowing uninterrupted through pipelines across Ukraine despite tensions between the two countries.

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

Electricity prices in Germany are expected to jump to record highs next year, the Neue Osnabrucker Zeitung newspaper reported on Friday, citing the country’s local public utilities association
подробнее...

Despite accelerated efforts by Western states to wean their economies off Russian oil and gas, it may take years to replace them, the head of the World Bank has warned.“Under current policies global
подробнее...

The Russian budget will be in deficit from 2023 to 2025, Prime Minister Mikhail Mishustin said at a government meeting on Thursday.“During the entire period, the budget will be in deficit, the main
подробнее...

Over 15,000 German stores are facing bankruptcy due to soaring energy costs, Der Spiegel reported on Friday, citing the German Retail Association (HDE).According to the report, the HDE wrote a letter
подробнее...

Japanese automaker Toyota has decided to shut down its plant in St. Petersburg, Russia's Ministry of Industry and Trade said in a statement on Friday.The company vowed to fulfill all of its social
подробнее...

The German government will take control of Securing Energy for Europe (SEFE), formerly Gazprom Germania, a subsidiary of Russian energy giant Gazprom, Der Spiegel reported on Thursday, citing its
подробнее...

The Central Bank of Russia (CBR) is considering creating a compensation fund for local investors whose assets have been frozen by Western nations, Governor Elvira Nabiullina said on Thursday during
подробнее...

Nicaragua is ready to explore the use of the Mir payment system, developed by Moscow in response to Western sanctions, and allow the use of Russian credit and debit cards in the country, its minister
подробнее...

The share of Russian gas in the European Union market has plummeted from 50% to 9% since the beginning of the current year, French President Emmanuel Macron said on Monday. Russian gas imports by EU
подробнее...

Tax cuts announced by the UK government last week should be reevaluated, International Monetary Fund (IMF) analysts have warned, saying the measure offers poor prospects for the Bank of England in the
подробнее...

One of Russia’s top banks, VTB has become the first lender in the country to launch money transfers to China in yuan, sidestepping the Western-controlled global financial messaging system SWIFT.“The
подробнее...

EU ambassadors may soften restrictions on some Russian products, Politico reported on Wednesday, citing senior officials and diplomats. The ambassadors are expected to discuss an eighth round of
подробнее...

The proposal by the EU to place a price cap on Russian natural gas imports is a foolish, non-market-oriented plan that has no future, Russian President Vladimir Putin said on Wednesday.“Faced with
подробнее...

Pressure in the Nord Stream 2 undersea gas pipeline, which was intended to pump gas from Russia to Germany, dropped from 300 to 7 bars overnight, a spokesperson for the pipeline's operator said on
подробнее...

The intense pressure placed on Russia by Western sanctions has forced the country to ramp up efforts to launch new factories and enterprises, according to Executive Director of the Russian-Chinese
подробнее...

The European Commission President Ursula von der Leyen proposed fresh anti-Russia sanctions on Wednesday. These included tighter trade restrictions, more individual blacklistings and an oil price cap
подробнее...

Major European ports have signaled their readiness to facilitate the export of Russian fertilizers, UN Secretary-General Antonio Guterres said in an interview with RIA Novosti, published on
подробнее...

The Moldovan government has launched a special website which will help citizens find firewood to heat their homes, authorities announced this week.“The site provides information about the nearest
подробнее...