Germany Says It Won't Stop Buying Russian Energy Despite Moscow’s War in Ukraine

[beijingwalker]

Germany Says It Won't Stop Buying Russian Energy Despite Moscow’s War in Ukraine​

By Bojan Pancevski
March. 8 2022
Germany will continue to buy natural gas, oil and coal from Russia despite Vladimir Putin’s aggression against Ukraine, the government in Berlin said Monday.

Germany and Europe are too dependent on Russian energy imports for power, heating and industrial production to be able to cut trade links with Moscow in the short term, Chancellor Olaf Scholz said in a statement.

“Europe’s supply of energy for heating, for mobility, for electricity generation and for the industry can’t be secured otherwise at the moment,” Mr. Scholz said. Russian energy, he added, was essential for the daily lives of citizens.

His comments came as Ukrainian Foreign Minister Dmytro Kuleba called on the West to cut its reliance on Russian energy.

"Stop buying Russian gas and oil...because right now Russian oil smells of Ukrainian blood," Mr. Kuleba said Monday.

Berlin has vowed to urgently diversify Germany's supplies of energy--and gas in particular--following Moscow's invasion of Ukraine, but experts have warned it would struggle in the short term because of the limited availability of such resources and the time needed to adapt the country's energy infrastructure.

The statement comes as Russian forces have been indiscriminately bombarding Ukraine's cities, including residential areas and groups of people trying to flee the fighting, causing widespread civilian casualties.

Germany, the world’s biggest buyer of Russian gas, gets over half of its gas, about a third of its coal and a quarter of its oil from Russia, according to official figures.

This is why energy trade is exempt from the sanctions Western countries imposed on Russia following its attack on Ukraine, Mr. Scholz said.

“We made a conscious decision to continue the activities of companies dealing with energy supplies from Russia,” he said.

Germany Says It Won't Stop Buying Russian Energy Despite Moscow’s War in Ukraine

Germany will continue to buy natural gas, oil and coal from Russia despite Vladimir Putin’s aggression against Ukraine, the government in Berlin said Monday. Germany and Europe are too dependent on Russian energy imports for power, heating and industrial production to be able to cut trade links wit

www.wsj.com

 

[salarsikander]

lol. diversify that, and make it more expensive for locals. Mark my words you cant completely get rid of Russian resources, the dependency will always share the largest proportion

 

[beijingwalker]

Germany is stupid to shoot itself in the foot, but not stupid enough to shoot itself in the head.

 

[8888888888888]

Germany Says It Won't Stop Buying Russian Energy Despite Moscow’s War in Ukraine​

By Bojan Pancevski
March. 8 2022
Germany will continue to buy natural gas, oil and coal from Russia despite Vladimir Putin’s aggression against Ukraine, the government in Berlin said Monday.

Germany and Europe are too dependent on Russian energy imports for power, heating and industrial production to be able to cut trade links with Moscow in the short term, Chancellor Olaf Scholz said in a statement.

“Europe’s supply of energy for heating, for mobility, for electricity generation and for the industry can’t be secured otherwise at the moment,” Mr. Scholz said. Russian energy, he added, was essential for the daily lives of citizens.

His comments came as Ukrainian Foreign Minister Dmytro Kuleba called on the West to cut its reliance on Russian energy.

"Stop buying Russian gas and oil...because right now Russian oil smells of Ukrainian blood," Mr. Kuleba said Monday.

Berlin has vowed to urgently diversify Germany's supplies of energy--and gas in particular--following Moscow's invasion of Ukraine, but experts have warned it would struggle in the short term because of the limited availability of such resources and the time needed to adapt the country's energy infrastructure.

The statement comes as Russian forces have been indiscriminately bombarding Ukraine's cities, including residential areas and groups of people trying to flee the fighting, causing widespread civilian casualties.

Germany, the world’s biggest buyer of Russian gas, gets over half of its gas, about a third of its coal and a quarter of its oil from Russia, according to official figures.

This is why energy trade is exempt from the sanctions Western countries imposed on Russia following its attack on Ukraine, Mr. Scholz said.

“We made a conscious decision to continue the activities of companies dealing with energy supplies from Russia,” he said.

Germany Says It Won't Stop Buying Russian Energy Despite Moscow’s War in Ukraine

Germany will continue to buy natural gas, oil and coal from Russia despite Vladimir Putin’s aggression against Ukraine, the government in Berlin said Monday. Germany and Europe are too dependent on Russian energy imports for power, heating and industrial production to be able to cut trade links wit

www.wsj.com

How is Germany going to pay Russia ? Russia is not going to give out free gas.

 

[beijingwalker]

How is Germany going to pay Russia ? Russia is not going to give out free gas.

Yuan

 

[Beast]

West feeling impact of Russia sanctions too as oil and gas prices soar | Larry Elliott

Europe’s vulnerability to loss of Russian energy supplies helps explain relative caution on sanctions

www.theguardian.com

At the start of 2022, the EU was paying €190m a day for the natural gas it received from Russia, but by the end of last week this daily figure had risen to €610m. The further increase in gas prices since means the bill will now be even higher.

 

[Indos]

Yuan

Euro instead

 

[MH.Yang]

It has little impact on China. Almost all our trade contracts with Russia are long-term contracts with fixed prices. For example, in 2014, we signed a 30 year natural gas supply contract with Russia at a price of $350.

BTW: Now the price of natural gas in Europe is 3800 US dollars, 11 times that of Chinese.

As Putin looks east, China and Russia sign $400-billion gas deal

China and Russia signed a $400-billion gas supply deal on Wednesday, securing the world's top energy user a major source of cleaner fuel and opening up a new market for Moscow as it risks losing European customers over the Ukraine crisis.

www.reuters.com

 

[Indos]

It has little impact on China. Almost all our trade contracts with Russia are long-term contracts with fixed prices. For example, in 2014, we signed a 40 year natural gas supply contract with Russia at a price of $350.

BTW: Now the price of natural gas in Europe is 3800 US dollars, 11 times that of Chinese.

As Putin looks east, China and Russia sign $400-billion gas deal

China and Russia signed a $400-billion gas supply deal on Wednesday, securing the world's top energy user a major source of cleaner fuel and opening up a new market for Moscow as it risks losing European customers over the Ukraine crisis.

www.reuters.com

There is no fixed price for long term gas contract, it will follow oil price movement

Singapore gets the gas from Indonesia and Malaysia for long term deal using pipe, but price fluctuation will make the gas price more expensive. Gas is relatively cheap before 2021. One of the pipe line for instant is commenced in early 2000 and will expire soon in 2023

Global Energy Crisis Hits Singapore as Power Provider Goes Bust

A record-breaking spike in electricity prices is short-circuiting Singapore’s efforts to liberalize its power sector, in the latest sign that the global crisis is delivering a blow to both energy suppliers and their customers.

www.bloomberg.com

 

[MH.Yang]

There is no fixed price for long term gas contract, it will follow oil price movement

Singapore gets the gas from Indonesia and Malaysia for long term deal using pipe, but price fluctuation will make the gas price more expensive. Gas is relatively cheap before 2021. One of the pipe line for instant is commenced in early 2000 and will expire soon in 2023

Global Energy Crisis Hits Singapore as Power Provider Goes Bust

A record-breaking spike in electricity prices is short-circuiting Singapore’s efforts to liberalize its power sector, in the latest sign that the global crisis is delivering a blow to both energy suppliers and their customers.

www.bloomberg.com

These contracts are actually gambling contracts.

The contract is to purchase 1140 billion cubic kilometers of natural gas for us $400 billion, which will be supplied over 30 years, with an annual supply of 38 billion cubic kilometers. So the price is already set at $350.

 

[Indos]

The contract is to purchase 1140 billion cubic kilometers of natural gas for us $400 billion, which will be supplied over 30 years, with an annual supply of 38 billion cubic kilometers. So the price is already set at $350.

View attachment 821839

OK then it is fixed price, for Indonesia we are against any fixed price for long term gas deal, except for domestic demand that is cap at certain price below international price

 

[MH.Yang]

OK then it is fixed price, for Indonesia we are against any fixed price for long term gas deal, except for domestic demand that is cap at certain price below international price

In 2014, due to the development of shale oil in USA and the rapid growth of global natural gas production, the market is not optimistic about energy prices.
For China, these contracts are gambling contracts. For Russia, these contracts are hedging contracts. Russia has been worried that the West will suppress energy prices, Indonesia has no such concern, so it does not need to participate in gambling.

 

[IblinI]

These contracts are actually gambling contracts.

The contract is to purchase 1140 billion cubic kilometers of natural gas for us $400 billion, which will be supplied over 30 years, with an annual supply of 38 billion cubic kilometers. So the price is already set at $350.

View attachment 821839

Remembered when people were not happy about the price back then.

 

[MH.Yang]

Remembered when people were not happy about the price back then.

At that time, I also opposed these contracts, and I also believed that energy prices would remain low for a long time.
In fact, before the outbreak of the epidemic, this judgment was not wrong. Even in 2021 after the outbreak, the price of natural gas remained at about $800. The contract can only be considered successful if it takes six years to appreciate by 100%, but the Ukrainian war has made these contracts a miracle.
What's more ridiculous is that the contract has 23 years left. We won the grand prize again.

 

[newb3e]

West feeling impact of Russia sanctions too as oil and gas prices soar | Larry Elliott

Europe’s vulnerability to loss of Russian energy supplies helps explain relative caution on sanctions

www.theguardian.com

At the start of 2022, the EU was paying €190m a day for the natural gas it received from Russia, but by the end of last week this daily figure had risen to €610m. The further increase in gas prices since means the bill will now be even higher.

Nato is paying Russia to Invade UKR!