Germany Is Ready To Attack Russian Oil After Moscow’s Decision

German Economy and Energy Minister Robert Habeck announced on Tuesday that Germany could be independent of Russian oil in a matter of days and not at the end of the year, as previously stated. The intensification of the war is leading the countries of the European Union to seek faster ways to reduce their dependence on Russia.

These statements come after Russia has announced the end of gas shipments to Poland and Bulgaria due to the refusal of these countries to pay in rubles, as Moscow demanded. The reaction in the gas market has not been long in coming. The price of natural gas futures contracts rises 24% today , after yesterday’s rally of 17%. Oil, for its part, advances close to 1% and is again close to 106 dollars per barrel.

Since before the invasion of Ukraine, Putin has used the energy supply as an asset to pressure the community bloc. Although it is still up in the air for Russian oil and gas to enter a new package of sanctions, Russia’s move poses a serious challenge to the unity of the European Union.

In this way, Habeck has declared that Germany has managed to reduce its dependence on Russian oil from 35% before the start of the war in Ukraine to 12% today, according to what he said in an appearance in Warsaw that was echoed by the media. Germans.

The remaining 12% corresponds to imports that are made through an oil pipeline connected to the Schwedt refinery, in the east of the country.

The green politician expressed the possibility that in the coming days it will be possible to develop an alternative supply to said conduit, managed by the Russian company Rosneft.

“The embargo is already possible”
“Today I can say that an embargo has become possible for Germany,” Habeck announced, in an appearance with his Polish counterpart, Anna Moskwa, in which he stressed that independence from Russian oil is “very, very close.” It seems that after weeks of failed negotiations , oil could be included in a new package of sanctions.

Russia announced the interruption of the flow of gas to Poland from this Wednesday, after the Polish refusal to make import payments in rubles, the Polish state gas company PGNiG reported on Tuesday.

PGNiG announced in a statement that the cut in the service will take place after the deadline imposed by Moscow to pay energy imports in rubles expired last Friday, which Warsaw refused.

PGNiG alleges that “the suspension of the gas supply is a breach of contract. Therefore, the company will take the appropriate measures to restore the delivery of natural gas under the agreed conditions and reserves the right to claim its contractual rights.”

The impact on Russia
Although the Kremlin does not openly admit it, these sanctions are hitting the heart of its economy. A document seen by Reuters reveals that Russia could see its oil output cut by 17% this year, the biggest drop since 1990.

According to the document, Russia’s oil production may decrease to between 433.8 million and 475.3 million tons (between 8.68 million and 9.5 million barrels per day) in 2022 from 524 million tons in 2021. .

That would be the lowest level since 2003, when Russia’s oil production stood at 421 million tons. The ministry did not respond to questions from Reuters.

Russian President Vladimir Putin has ordered the government to forge closer energy ties with Asia and diversify energy supply away from Europe to try to place its oil, but it seems that Moscow has been unable to find all the necessary customers to substitute damping for complete the West’s repudiation of its oil.

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