Rejection of Russian gas threatens Germany's economic strength

German Parliament. Photo: AP

"Twenty percent of our group's energy needs are met by gas. It is obvious that if Berlin refuses energy from Russia, the supply chain will be disrupted, and not only for Bosch," Hartung said in an interview with Handelsblatt. In Hartung's opinion, the consequences could be even more serious than the COVID-19 pandemic: Germany risks destroying "the industrial base of economic power."

Western countries have imposed wide-ranging sanctions against Russia after Moscow launched a special military operation to demilitarize and de-Nazify Ukraine. The restrictions primarily affected the banking sector and the supply of high-tech products. In Europe, there were calls to abandon Russian energy sources, and a number of companies have ceased operations on Russian territory.

According to the Kremlin, these restrictions and sanctions are an unprecedented economic war, but Russia is ready to deal with such developments. The Central Bank of Russia has taken measures to stabilize the foreign exchange market; payments for gas supplies to "unfriendly" countries are made in rubles. Sanctions pressure on Russia has also become an economic problem for both the US and Europe, causing fuel and food prices to rise./.