German industry issues warning over impact of cutting Russian gas deliveries
EMERGENCY DIGEST- The cessation of Russian gas deliveries would have a catastrophic effect on the German economy, according to Siegfried Russwurm, president of the country’s biggest industry association BDI.
“The consequences of cutting off Russian gas supplies would be catastrophic,” he told tabloid Bild am Sonntag in an interview published on Saturday evening.
Russwurm added that such a step would deprive the country’s businesses of the fuel, forcing them to shut down production lines.
“A host of companies in this case would be completely cut off from gas supplies,” he said. “In many cases, the affected firms will be forced to stop production, some enterprises may never be able to start it again.”
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Berlin believes Russia may stop gas supplies over sanctions imposed on Moscow and the supply of weapons by Germany to Ukraine. Earlier this week, German vice-chancellor and economy minister, Robert Habeck, said the country was not yet ready for a total embargo on Russian gas.
On Wednesday, Russia imposed sanctions on Gazprom’s European subsidiaries including Gazprom Germania, an energy trading, storage and transmission business that Germany placed under trusteeship last month to secure supplies. The sanctions list also includes Gazprom Schweiz AG, Gazprom Marketing & Trading USA, Vemex, Wingas, and EuRoPol GAZ.
Earlier, Ukraine suspended the flow of Russian natural gas to Europe, while blaming Moscow for the disruption. Russian gas had previously been flowing uninterrupted through pipelines across Ukraine despite tensions between the two countries.
