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Oil embargo against Russia: Habeck fears fuel shortages in East Germany and Berlin

2022-05-04T23:37:51.989Z


The EU wants to decouple itself from Russian oil. According to the Economics Minister, this could cause a lack of fuel, at least temporarily, in the capital. Problem is a large refinery.


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Gas station in Berlin (symbol image)

Photo: Achille Abboud / IMAGO

The EU Commission is sending a clear signal to Moscow.

In response to the war of aggression against Ukraine, an embargo on Russian oil is imminent.

According to Economics Minister Robert Habeck (Greens), this step could temporarily lead to a fuel shortage in eastern Germany and the greater Berlin area.

"It cannot be ruled out, unfortunately I have to say, that there will actually be shortages," said Habeck on Wednesday evening on the "RTL Direkt" program.

The reason is that they are supplied by the large refinery in Schwedt, Brandenburg.

Only Russian oil is processed in the plant.

It could happen that “there is not enough oil and therefore too little petrol available for a limited time,” said Habeck.

However, solutions are being worked on, according to the minister.

The PCK refinery in Schwedt, Brandenburg, is the most important supplier of petroleum products in the Berlin-Brandenburg area.

The majority owner is the Russian state-owned company Rosneft.

The crude oil processed at PCK is delivered from Russia via the Druzhba oil pipeline.

Because of the war in Ukraine, the EU Commission has proposed to the Member States a gradual ban on imports of crude oil and oil products from Russia by the end of the year.

It is about a complete ban on imports, whether by sea or pipeline, whether crude oil or refined.

In order to give the countries time for the changeover, there should be longer transition periods in some cases.

Specifically, it is planned that after a phase-out phase of six months, an import ban on crude oil should apply and after a phase-out phase of eight months, an import ban on oil products as well.

Minister speaks of "price jumps"

Oil prices continued to rise following the EU Commission's announcement.

In early trading, a barrel (159 liters) of North Sea Brent cost $106.12.

That was $1.15 more than the day before.

The price of a barrel of the US West Texas Intermediate (WTI) variety rose by $1.26 to $103.67.

According to experts, the medium-term price reaction on the oil markets will depend above all on whether Russia can sell its oil elsewhere and whether there is sufficient capacity worldwide to replace Russian oil that fails.

Previously, Habeck had already predicted high "price jumps" in the event of a delivery stop.

According to the Green politician, the reason is, among other things, that Russian oil must be replaced by probably more expensive alternatives from other countries.

In addition, the conversion of refineries and delivery routes means effort and costs.

These developments are also likely to make refueling or heating more expensive.

jok/AFP

Source: spiegel

All business articles on 2022-05-04

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