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The West is planning these Russia sanctions – but they would also have consequences for Germany

2022-02-11T04:35:05.302Z


The West is planning these Russia sanctions – but they would also have consequences for Germany Created: 02/11/2022 05:21 By: Kai Hartwig Chancellor Olaf Scholz (SPD, r) and US President Joe Biden discuss the Ukraine conflict. © Kay Nietfeld/dpa Will Russian troops really invade Ukraine? Such an escalation would have unpleasant consequences for Russia - and Germany. Munich – The Ukraine crisi


The West is planning these Russia sanctions – but they would also have consequences for Germany

Created: 02/11/2022 05:21

By: Kai Hartwig

Chancellor Olaf Scholz (SPD, r) and US President Joe Biden discuss the Ukraine conflict.

© Kay Nietfeld/dpa

Will Russian troops really invade Ukraine?

Such an escalation would have unpleasant consequences for Russia - and Germany.

Munich – The Ukraine crisis keeps the world in suspense*.

On Thursday (January 10), Chancellor Olaf Scholz* completed a veritable marathon of talks.

The German head of government tried to mediate.

But he also indicated his determination to impose sanctions on Russia* should President Vladimir Putin* send his troops to Ukrainian soil.

But what exactly would the West's sanctions against Russia look like if there were a military escalation?

So far, the Chancellor has not mentioned the much-discussed gas pipeline Nord Stream 2 by name*.

During his initial visit to the USA, however, he confirmed in a

CNN*

interview: "We are ready to take steps that will also cause costs for us." Scholz should also have meant Nord Stream 2 - although the Chancellor also in the US Television circumvented the concrete designation.

Ukraine crisis: The West is preparing these sanctions against Russia

Meanwhile, the US and the EU are preparing possible sanctions against Russia.

According to Chancellor Scholz, these are already "well prepared", as he explained at a press conference with Denmark's Prime Minister Mette Frederiksen on Wednesday (February 9).

Business Insider

, meanwhile, reported that there are four key actions the

West would take in the event of a Russian military offensive in Ukraine.

This includes the aforementioned stop on the Nord Stream 2 gas pipeline, through which Germany's gas supply would be managed from Russia.

The multi-billion dollar project was completed in 2021 and an operating license is still pending.

Russia sanctions: Nord Stream 2 would also weaken Ukraine economically

A shutdown of Nord Stream 2 would weaken Russia's economy, as exports of raw materials make up by far the largest part of Russia's budget.

But the Ukraine would also have to accept financial losses, since as a transit country through which the pipeline runs, it receives billions in annual payments.

Without Nord Stream 2, Germany still had the option of using other gas pipelines.

But Russia could also shut it down in response to a Nord Stream 2 stop.

That would endanger the energy supply of the entire EU.

According to the report, another sanction is the exclusion of Russia from the international payment system SWIFT.

It is true that this would put an end to Russian foreign trade for the time being.

However, the consequences of such a step for the global financial system are hardly foreseeable.

Therefore, an all-encompassing exclusion of Russia from SWIFT is considered unlikely.

Russia sanctions: Stopping raw material exports would have consequences for Germany

The third possible sanction could be a blockade of Russian trade routes, coupled with a restriction on trade with Russia.

Only two percent of German imports and exports are transactions with the country.

However, such a sanction could have severe consequences for individual sectors or companies whose economic ties to Russia are deeply rooted.

This would be felt particularly in East German regions.

A blockade of Russian raw material supplies is the fourth sanction.

As already described, this would damage Russia's economy enormously.

Since Russian raw material exports (gas and oil) are of great importance for Europe and thus also for Germany, a price increase within the EU would probably have to be feared in the event of sanctions.

In the long term, alternative energy sources could also be generated in countries such as Qatar or Azerbaijan.

In addition, liquid gas could be purchased from the USA and Australia.

However, there would be no short-term replacement for Russia's deliveries.

(kh) *Merkur.de is an offer from IPPEN.MEDIA

Source: merkur

All news articles on 2022-02-11

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