Ukraine war
Social association warns of energy embargo
Adolf Bauer, President of the Social Association Germany, rejects an energy embargo. Photo: picture alliance / Roland Weihrauch/dpa
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Russia’s brutal actions in the Ukraine war are fueling discussions about stopping Russian energy supplies. But many voices warn of the consequences in Germany – especially for poorer people.
In the discussion about a complete energy embargo against Russia, the warning voices in Germany are getting louder and louder. Because of the foreseeable consequences for the people in the Federal Republic, the President of the Social Association Germany, Adolf Bauer, also rejects an embargo.
“We should not take the risk of dramatic consequences for our labor market. We can only get out of Russia’s energy supply if we can rule out the possibility of major disruptions here,” Bauer told the Neue Osnabrücker Zeitung.
In view of the high inflation, Bauer has already warned of the dramatic consequences for poorer people in Germany as a result of the war in Ukraine. “It’s not just energy prices that are rising incredibly, but also rents and food prices. If things continue like this, the poorer population, for whom it is not a question of a loss of prosperity because they can hardly make ends meet anyway, will suffer beyond measure.” Politicians cannot tolerate this.
Because of the Russian attack on Ukraine, the EU has now decided to stop imports of Russian coal and imposed further unprecedented sanctions. There is also constant discussion about an immediate exit from Russian gas or oil. Germany and other countries have so far shied away from this for fear of economic damage. Employers and unions have jointly warned of the impact of a potential Russian gas supply freeze. According to Bundesbank model calculations, a complete energy embargo could plunge the German economy into recession this year.
Could an embargo benefit Russia?
The general secretary of the Economic Council of the CDU, Wolfgang Steiger, even fears the almost paradoxical consequences of an embargo. “We must not be naïve when it comes to unilaterally terminating coal and oil deliveries from long-term, low-cost contracts. Russia should even benefit from it, »said Steiger to the newspapers of the Funke media group. “Because it could then achieve exorbitantly higher prices on the world market for the quantities released than at present, but our energy suppliers would have to pass on the increased world market prices of other suppliers to the end consumer.”
A holistic concept for security of supply in Germany and Europe must be worked on quickly, said Steiger. “Above all, this requires a cool head. Nobody needs symbolic politics.” It is unclear what financial consequences an embargo would have for Russia. “In the worst case, there is only a shift in quantities on the world market.”