Germany opposes embargo on Russian gas, oil and coal
Novatek, the world's first facility for the production of natural gas liquefaction trains in the village of Belokamenka in the Murmansk region, Russia, on November 29, 2021. AFP - NATALIA KOLESNIKOVA
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2 mins
The economic consequences of the conflict triggered by Russia in Ukraine are already there.
This March 7, a new outbreak of fever on the international markets, with vertiginous rises in oil and gold and a heavy fall in the stock markets at the opening in Asia.
The question of an embargo on gas, oil and Russian coal is raised in Europe.
Question swept aside by the German Ministers of Finance and Foreign Affairs.
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Although their Western allies were discussing very seriously the possibility of an embargo, on Sunday March 6, the German Ministers of Finance and Foreign Affairs said they were opposed to a ban on imports of hydrocarbons from Russia.
In Berlin, we do not believe in the effectiveness of this weapon against the Russians.
“
We are ready to pay a very high economic price, but if tomorrow, in Germany, the lights go out, that will not stop the tanks
”.
This is how the head of German diplomacy, Annalena Baerbock, reacted, while her colleague from Finance recalled the need to hold out over time against the Russian invader.
A problematic dependence on Russian gas
Unilaterally stopping importing gas, oil and coal from Russia would threaten social peace in Germany, for the German Minister of Ecology.
As a reminder, Germany imports from Russia more than half of its gas and 42% of its oil as well as coal.
And it will take years to get out of this addiction.
In its quest to diversify its supplies, Berlin concluded an agreement on Saturday March 5 for the construction of an LNG terminal intended to accommodate liquefied natural gas.
Its very first infrastructure of its kind.
►Also read:
War in Ukraine: the effects on the supply of natural gas and European markets
Fever in the markets
In the wake of the Asian stock markets, the European financial markets all opened in a very sharp decline on 7 March.
Less than 5% for the CAC 40 and less than 4% in Frankfurt.
And commodity prices are skyrocketing.
Oil is clearly on the upside.
The price of a barrel of Brent from the North Sea approached 140 dollars on Sunday evening.
An absolute record since 2008. Moscow is the second largest oil exporter on the planet.
Gas prices are also on the rise.
Its European price jumped 60% to more than 300 euros per megawatt-hour.
In the aftermath, the prices of raw materials soar.
Metals are an important sector, exporting from Russia to Europe.
The conflict with Ukraine has also boosted the prices of aluminium, copper and nickel.
And gold, considered a safe haven, continues to rise.
Another cause for concern, banking stocks are particularly badly treated.
The Societe Generale title thus lost nearly 8%, and Crédit Agricole 6.5%.
Its two French banks pay their trade commitments, with Ukraine and Russia.
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