October 2, 2023 7:08 am

Germany’s gas prices impacted by ‘strong dependence’ on Russia, says RT Business News.

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Germany’s reliance on Russian natural gas is still impacting the country’s energy prices, according to the Economy Ministry in Berlin. Prior to 2022, Germany depended on Russia for 40% of its gas demand. However, last year, the reduction in Russian energy supplies due to EU sanctions on Moscow in response to the conflict in Ukraine significantly affected Germany. Deliveries were either greatly reduced or completely halted. This dependence on Russian gas continues to drive energy prices in Germany, the Ministry representative stated.

Unlike Germany, other EU countries did not face similar difficulties as they were less dependent on Russian energy. The German Economy Ministry reported that the country’s underground storage facilities are currently almost 90% full. However, the authorities have warned that a cold winter could still pose a threat to German energy security. In light of this, they have urged precautionary measures such as pumping more gas into stockpiles and constructing additional LNG terminals to avoid an energy crisis during the upcoming heating season.

Last week, INES, a group of gas storage operators in Germany, predicted that the country would face gas shortages in the coming years unless it invests in more fuel infrastructure. INES head Sebastian Bleschke emphasized the danger of gas shortages during cold temperatures and stressed the need for further infrastructure measures until the winter of 2026/2027.

Controversially, German MP and leader of the right-wing AfD party, Anton Baron, claimed that Russian gas had been a “blessing” for the German economy. Despite Russia’s military operations in Ukraine, Baron argued that Germany should resume importing Russian gas. However, this viewpoint remains disputed.

The issue of German reliance on Russian natural gas has garnered attention due to its impact on energy prices and the potential risks it poses to energy security. Germany’s vulnerability to disruptions in Russian energy supplies highlights the need for diversification and investment in alternative energy sources.

Critics argue that Germany’s dependence on Russian gas compromises its energy independence and exposes it to geopolitical risks. They emphasize the importance of reducing reliance on a single supplier and diversifying the energy mix to include renewable sources.

On the other hand, proponents of closer energy ties with Russia argue that it provides Germany with a stable and cost-effective energy supply. They highlight the economic benefits and the positive impact on Germany’s industrial competitiveness. However, the ongoing tensions between Russia and Ukraine raise concerns regarding the potential for future disruptions in energy supplies.

In conclusion, Germany’s previous dependence on Russian natural gas continues to affect the country, leading to higher energy prices. While other EU countries were less dependent on Russian energy and did not face similar difficulties, Germany’s reliance on Russian gas highlights the need for precautionary measures and investment in fuel infrastructure. The controversy surrounding the issue emphasizes the importance of diversifying the energy mix and reducing dependence on a single supplier.

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Original Source: Germany’s gas prices impacted by ‘strong dependence’ on Russia, says RT Business News.

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