Irish gas prices will rise as Germany blocks Russian gas pipeline

'Sanctions will have impacts, we would much prefer not to be in this situation. Coming off the back of the pandemic, this is the last thing the European continent needs, or the world even,' Taoiseach says

German chancellor Olaf Scholz greets Taoiseach Micheál Martin as he arrives for talks at the Chancellery in Berlin on Tuesday. Picture: John MacDougall/AFP via Getty Images

Germany’s decision to block the Russian gas pipeline will have a negative impact on gas prices in Ireland, Taoiseach Micheál Martin has said.

Speaking to reporters in Berlin, Mr Martin said the decision to stop the Nord Stream 2 pipeline by German chancellor Olaf Schloz was “very significant” given the amount of money Germany has invested in it.

“Sanctions will have impacts, we would much prefer not to be in this situation. Coming off the back of the pandemic, this is the last thing the European continent needs, or the world even,” he said.

He slammed Russia's desire to create a new “sphere of influence”, saying such a mentality is not acceptable in the 21st century.

“Primarily I mean, it's a very significant decision by the German chancellor to make, and we shouldn't understand the significance of that statement and that announcement,” he said.

He made clear that Europe and Ireland can only face further pain in terms of price increases because of the Russian crisis.

“I think more broadly, the crisis will have a negative impact on oil prices. There's a number of factors that have come into play here. So, there's been high demand all over the world, in respect of energy. So when you combine it all and you get a very serious situation, which could get worse because of what happened yesterday,” he said.

Carbon taxes

Speaking to the Irish Examine, Mr Martin said the May increases in carbon taxes will still go ahead because they are legislated for and represent only a small portion of the wider energy crisis.

Asked if he would consider pausing the carbon taxes, he said curtly: “No, they will not be paused. 

The carbon taxes are going back to the people in the form of retrofitting grants, farming grants and they protect people from fuel poverty. 

"They are not the big issue and they represent only a very small amount of the huge increases that have occurred in the recent months. We are not going to rescind the legislation as it is in law.” 

Asked if this current crisis would lead to war in Ukraine, Mr Martin replied: “I hope not. Every avenue in terms of diplomacy will be used and in terms of dialogue will be used by Europe, the United States, UK and others to prevent that from happening. Because it would be catastrophic if it was to happen in particular for the people within Ukraine. 

"This is not how things should be done in the 21st century and creating narratives that really belong to the late 19th century and early 20th century really have no place in the current era. There are ways of resolving this.” 

Phil Hogan

Asked separately about criticism of himself and Leo Varadkar from former EU commissioner Phil Hogan, Mr Martin rejected Mr Hogan’s assertion he was “treated like a criminal”.

He said any talk of potential legal action is a matter for Mr Hogan and the EU and not for him.

“No, I don't believe so. But I think the issue that Phil has raised is one between the European Commission and Phil himself,” he said.

Mr Martin described Mr Hogan as a “competent and effective” commissioner adding he paid a “very high price”.

“He's paid a very heavy price for the situation at the time. I mean, he was very diligent and effective commissioner. But as I said, before, there was a context for that time as well, in terms of where the public were in terms of adherence to, to the guidance, and to the spirit of the of the Covid 19 guidance.

“I haven't read the interview but I've heard feedback from it in terms of what has been articulated, and fundamentally, it is a matter between the commission and Phil Hogan,” he said.