Quitting Russian oil by late summer ‘realistic’, says Germany

Quitting Russian oil by late summer ‘realistic’, says Germany
A chemical plant near Cologne in Germany (Martin Meissner/AP)

Germany has said it is making progress on weaning itself off Russian fossil fuels and expects to be fully independent of Russian crude oil imports by late summer.

Economy and climate minister Robert Habeck said on Sunday that Europe’s largest economy had reduced the share of Russian energy imports to 12% for oil, 8% for coal and 35% for natural gas.

Germany has been under strong pressure from Ukraine and other nations in Europe to cut energy imports from Russia that are worth billions of euro, which help fill Russian president Vladimir Putin’s war chest.

German economy and climate minister Robert Habeck (Kay Nietfeld/dpa via AP)

“All these steps that we are taking require an enormous joint effort from all actors and they also mean costs that are felt by both the economy and consumers,” Mr Habeck said in a statement.

“But they are necessary if we no longer want to be blackmailed by Russia.”

The announcement comes as the entire European Union considers an embargo on Russian oil following a decision to ban Russian coal imports starting in August.

Germany has managed to shift to oil and coal imports from other countries in a relatively short time, meaning that “the end of dependence on Russian crude oil imports by late summer is realistic”, Mr Habeck’s ministry said.

Tanks for producing bio gas at the harbour in Hamburg (Martin Meissner/AP)

Weaning Germany off Russian natural gas is a far bigger challenge.

Before Russia invaded Ukraine on February 24, Germany got more than half of its natural gas imports from Russia. That share is now down to 35%, partly due to increased procurement from Norway and the Netherlands, the ministry said.

To further reduce Russian imports, Germany plans to speed up the construction of terminals for liquified natural gas, or LNG.

The energy and climate ministry said Germany aimed to put several floating LNG terminals into operation as early as this year or next.

Imports of natural gas into Europe come from both pipelines and liquefied natural gas (AP)

This was an ambitious timeline that the ministry acknowledged “requires an enormous commitment from everyone involved”.

Germany has resisted calls for an EU boycott on Russian natural gas. It also watched with worry last week as Moscow immediately halted gas supplies to Poland and Bulgaria after they rejected Russian demands to pay for gas in roubles.

European officials called these moves by Russia “energy blackmail”.

Germany’s central bank has said a total cutoff of Russian gas could mean five percentage points of lost economic output and higher inflation.

More in this section

The Business Hub
Newsletter

News and analysis on business, money and jobs from Munster and beyond by our expert team of business writers.

Sign up
Lunchtime
News Wrap

A lunchtime summary of content highlights on the Irish Examiner website. Delivered at 1pm each day.

Sign up
Revoiced
Newsletter

Some of the best bits from irishexaminer.com direct to your inbox every Monday.

Sign up
Execution Time: 0.245 s