04.03.2022, 15:02
The Bundestag Assessed the Impact of Sanctions Against the Russian Federation on the German Economy
Source: OREANDA-NEWS
OREANDA-NEWS. The sanctions imposed against Russia for the operation to protect the Donbass will hit the German economy hard. This was announced to Izvestia on Friday, March 4, by Steffen Kotre, a member of the Bundestag Committee on Energy from Alternative for Germany.
“Sanctions will hit the German economy hard. The energy policy of the federal government of Germany is contrary to common sense. The simultaneous abandonment of coal power and nuclear power without a functioning replacement can only be explained by ideology. Energy prices will continue to rise significantly for citizens. The industry will also be hit hard. For example, aluminum or metallurgical, as well as chemical and construction industries, he stressed.
The German politician noted that high natural gas prices are already negatively affecting fertilizer production and, as a result, food production.
“Rising inflation will do the rest. The entire economy, and society as well, will suffer greatly from the consequences, ”Kotre concluded.
The day before, German Chancellor Olaf Scholz said that the decision to stop the certification of the Nord Stream 2 gas pipeline was timely. He also said that Germany has already started buying gas bypassing Russia, but continues to receive gas, coal and oil from the Russian Federation. Scholz also added that Germany was preparing to buy gas from outside Russia. According to him, now it has worked out, so it will be possible in the future.
At the same time, on March 3, German Economy Minister, Vice Chancellor Robert Habek pointed out that Germany is already partially feeling the impact of anti-Russian sanctions on the German economy. He noted that gas exports from Russia should be replaced, and work is currently underway on this issue. The vice-chancellor also pointed out that economic sanctions have completely cut off the financial market of the Russian Federation, at the moment it is no longer liquid.
According to former UN official Francisco Coloane, not only the cessation of oil and gas supplies, but also goods from the agricultural and manufacturing sectors can lead to a powerful blow to the European economy. The creation of a new supply chain for imported goods will take at least six months, he told Izvestia.
“Sanctions will hit the German economy hard. The energy policy of the federal government of Germany is contrary to common sense. The simultaneous abandonment of coal power and nuclear power without a functioning replacement can only be explained by ideology. Energy prices will continue to rise significantly for citizens. The industry will also be hit hard. For example, aluminum or metallurgical, as well as chemical and construction industries, he stressed.
The German politician noted that high natural gas prices are already negatively affecting fertilizer production and, as a result, food production.
“Rising inflation will do the rest. The entire economy, and society as well, will suffer greatly from the consequences, ”Kotre concluded.
The day before, German Chancellor Olaf Scholz said that the decision to stop the certification of the Nord Stream 2 gas pipeline was timely. He also said that Germany has already started buying gas bypassing Russia, but continues to receive gas, coal and oil from the Russian Federation. Scholz also added that Germany was preparing to buy gas from outside Russia. According to him, now it has worked out, so it will be possible in the future.
At the same time, on March 3, German Economy Minister, Vice Chancellor Robert Habek pointed out that Germany is already partially feeling the impact of anti-Russian sanctions on the German economy. He noted that gas exports from Russia should be replaced, and work is currently underway on this issue. The vice-chancellor also pointed out that economic sanctions have completely cut off the financial market of the Russian Federation, at the moment it is no longer liquid.
According to former UN official Francisco Coloane, not only the cessation of oil and gas supplies, but also goods from the agricultural and manufacturing sectors can lead to a powerful blow to the European economy. The creation of a new supply chain for imported goods will take at least six months, he told Izvestia.
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