Germany will support an EU oil embargo on Russia & More News Here

Lindner mentioned he didn’t need to speculate on whether or not some EU member states, akin to Hungary, must be given exemptions or carve outs from an oil embargo.

“I can assure you that Germany is ready to reduce oil imports, we know others are considering this question carefully,” he added.

Last yr, Russia accounted for about 27% of EU oil imports. It additionally provided about 40% of Europe’s pure fuel. EU leaders have already promised to slash Russian fuel imports by 66% this yr, and to interrupt the bloc’s dependency utterly by 2027.

“We have prepared ourselves to be less dependent on Russian energy imports,” Lindner mentioned. “We can reduce the imports, starting with coal, then oil. It will take more time to be independent from Russian natural gas imports, but we will continue so in the end we will be completely independent from Russia.”

Moscow raised the stakes in a tense power standoff with Europe final week by slicing off provides of pure fuel to Poland and Bulgaria. State fuel large Gazprom mentioned neither nation had agreed to President Vladimir Putin’s demand that clients in “unfriendly” international locations should open two accounts at Gazprombank — one in euros and the second in rubles, from which funds for the fuel can be made.

The overwhelming majority of Gazprom’s contracts with its European clients stipulate fee in euros or {dollars}. The Kremlin’s ultimatum relating to ruble funds is broadly seen as a transfer to bolster its battle chest and increase the Russian foreign money.

Is Germany subsequent?

German fuel distributor Uniper mentioned final week it will proceed to pay for its Russian provides in euros however added that it believed a “payment conversion compliant with sanctions law” was attainable. It mentioned it was inspecting the matter rigorously in shut coordination with the German authorities.

Lindner mentioned he anticipated Germany’s utilities to honor the phrases of their contracts, which require fee in euros or {dollars}.

“Germany can’t be blackmailed, we know there is a dependency on natural gas from Russia, it is a reality. We need time to reduce this dependency,” he instructed CNN. “This is the situation of the contracts and we do not change because Putin needs rubles for his war chest.”

Germany has lowered its consumption of Russian fuel to 35% of imports from 55% earlier than the battle in Ukraine, however says it must preserve shopping for from Moscow not less than till subsequent yr to keep away from a deep recession.

Uniper mentioned that it can’t cope with out Russian fuel within the brief time period.

“This would have dramatic consequences for our economy,” it mentioned in its assertion.