German Economy Minister Robert Habeck. Photo: dpa via AP
SCMP/Bloomberg: Ukraine war: Germany accuses Russia of ‘weaponising’ energy in escalation of gas feud
* Economy Minister Robert Habeck said ‘energy can be used powerfully in an economic conflict’ after Moscow sanctioned Gazprom Germania and reduced supplies to Berlin
* He downplayed the impact, saying Germany, the largest buyer of Russian gas, can cope with the disruption
Russia reduced natural gas supplies to Germany in retaliation over Europe’s penalties over the war in Ukraine, prompting a government minister to accuse Moscow of using its energy exports as a “weapon.”
A unit of Gazprom PJSC that was seized by Germany is no longer receiving all contracted volumes, according to German Economy Minister Robert Habeck, who is also the vice chancellor in the ruling coalition in Berlin. He downplayed the impact, saying Europe’s biggest economy is receiving gas from alternative sources and can cope with the disruption.
Russia’s decision to sanction Gazprom Germania GmbH shows that “the confrontation over energy is a weapon,” Habeck said on Thursday in a speech to the lower house of parliament. “Energy can be used powerfully in an economic conflict.”
The reduction in supplies to the unit marks the latest escalation in Europe’s stand-off with Russia over energy. Natural gas prices in the region jumped on the German retaliation and disruptions to a key transit route through Ukraine. Russia had already cut supplies to Poland and Bulgaria amid a dispute over payment terms.
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Update #1: Russia using energy 'as weapon', says Berlin (AFP)
Update #2: Russia May Use Energy as Weapon to 'Blackmail' NATO Countries: Berlin (Newsweek)
WNU Editor: In the past when the West imposed sanctions on a country it was always the country that was being sanctioned that suffered. There was never any financial or economic blow-back on the West.
No more now.
I think this is the first time where we are seeing the West receive serious economic blow-back from the sanctions that they have imposed, and what is very telling is the reaction from Western leaders like German economic minister Robert Habeck.
It is quite a sight to see how surprised they are. That Russia, an economy the size of Italy (or so the media narrative goes), is not only imposing counter-sanctions, but are severely damaging Europe in the process.
I am not surprised.
As this blog has mentioned many times before. The Russian economy is not as weak and fragile that many like to believe it is, and it is certainly not like Italy's.
It is a super-power when it comes to resources, resource development, and resource exports. And at a time when much of the world needs these resources to grow and prosper, sanctions from the West will hurt the Russian economy, but in the medium to long term Russia will quickly recover. Can one say the same about the EU?
