German Economy Minister Robert Habeck has made it clear that “Russia’s demand is a violation of the agreements already signed” with Western countries and that “once again it proves that Russia is not a stable partner.” Habeck declined to give details of Berlin’s future reaction, saying “we need to consult with our European partners to see how we respond to Moscow.” But the Christian Democratic Opposition (CDU) also vehemently rejects Vladimir Putin’s demands. “A free Europe cannot be blackmailed, European leaders must give a clear answer,” he said in parliament on Thursday. of the Christian Democrats Andreas Jung.
Jens Zudekum, a professor of economics at the University of Düsseldorf, said on Twitter that “there are long-term contracts for gas supplies, which usually provide for payment in dollars”, so “the requirement to pay in rubles is a clear violation of contract “. Finance Ministry sources in Berlin say that if the West complied with Putin’s demand for a ruble payment, it would violate trade sanctions imposed on Moscow. This is because it would have to convert euros or dollars into rubles, which, however, is prohibited under the regulatory framework of sanctions, which the EU itself has approved.
“New episode” in the trade war
In any case, German analysts stress that this is a “new escalation” in the economic war with Vladimir Putin’s Russia, which may bring us one step closer to imposing an energy embargo. Russia’s Deputy Prime Minister Alexander Novak has warned the West not to take such a step, saying “an energy embargo against Russia would cause the global oil market to collapse completely.” The economic review Handelsblatt notes that the German government remains wary of such a decision, which would have significant consequences for the consumer, but also in general for the course of the economy in a country that imports from Russia 50% of natural gas. uses.
Aurora Energy Research associate Aniz Gunbold told Handelsblatt, however, that if Gazprom decided to ask for a ruble payment unilaterally, it would be involved in a series of litigation, as “buyers could go to arbitration”. Sebastian Dulienne, director of the Institute of Macroeconomics and Economic Research in Berlin, expresses a different view. He believes that a payment in Gazprom in rubles would be feasible and legal, if the conversion into Russian currency is made through Gazprom’s own bank, which is not yet on the Western sanctions list.
Giannis Papadimitriou (HB, DPA, ARD)
Source: Deutsche Welle
Source: Capital
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