Germany promotes oil embargo – Hungary threatens veto

Created: 05/02/2022, 14:05

By: Lukas Zigo

Germany has reduced its dependence on Russian oil and is now promoting an oil embargo.

Other EU countries are not that far - Hungary even threatens to veto it.

Berlin – In recent years, there has been repeated talk about Germany's susceptibility to blackmail due to its dependence on Russian raw material supplies.

Vladimir Putin has an enormous leverage over Germany and its economy.

A lever, however, that works in both directions.

Because Russia is just as dependent on funds from the West as Germany is on the raw materials it gets for it.

More than ever, Russia is dependent on income from the West in the Ukraine conflict, not only because of the high costs of a war, but also because this income is currently artificially protecting the ruble from falling.

After hasty attempts to diversify the energy supply, Federal Foreign Minister Annalena Baerbock has now confirmed that Germany supports an oil embargo against Russia.

One is now "prepared" to manage without Russian oil for several years, said the Green politician on ARD.

Economics Minister Habeck: Oil embargo for Germany is probably “tolerable”

Federal Economics Minister Robert Habeck also echoed the words of his Green party colleague.

According to this, an oil embargo for Germany would probably be “tolerable”, but would “not leave the economy unscathed”.

It is still unclear whether there will be an oil embargo against Russia in the near future, Habeck said on Monday (May 2, 2022) in Berlin.

"Friendship - Druzhba" is written on the site of the PCK refinery on the oil pipeline from Russia.

© Patrick Pleul/dpa

In the event of a supply stop for Russian oil, there would also be "high price jumps" in Germany, said the minister.

Switching to new suppliers could also mean a “temporary loss” of supply in some regions.

Overall, however, Germany will not "slip into an oil crisis," Habeck said with conviction.

In a short space of time, Germany has made "great steps forward" in becoming independent of Russian oil.

The economics minister warned of a situation in which Russia would export less oil but the financial losses would be overcompensated by rising prices on the world market.

There is also the danger of driving poorer countries into Russia's arms if the Kremlin advertises lower energy prices.

In that case, "we would have made a geopolitical mistake," Habeck said.

Oil embargo: Hungary threatens to veto European oil and gas sanctions

As the rest of the EU prepares for commodity embargoes against Russia, Hungary is threatening to veto these EU sanctions.

The Hungarian Chancellery Minister Gergely Gulyas said on Sunday evening (01 May 2022) on the pro-government TV station Hir TV: "To put it plainly: we will never support sanctions (with regard to oil and gas supplies)." In the EU is for such sanctions generally require the approval of all member states.

Gyulas said: "Since they can only be decided unanimously, there is no point in the European Commission proposing sanctions that would restrict current Hungarian imports." Currently, nobody can replace Russian oil and gas supplies, the minister said.

At a special meeting on Monday, the energy ministers of the EU states will discuss, among other things, Russia's freeze on gas supplies to Poland and Bulgaria and possible sanctions against Russia.

(lz/dpa)