Exiting the country is more complicated than most realize, according to Austrian Foreign Minister Alexander Schallenberg. In a recent interview with German newspaper Frankfurter Allgemeine Zeitung, Schallenberg highlighted that despite the ongoing conflict between Russia and Ukraine, more than 90% of Western businesses that were present in Russia before the conflict are still operating in the country. He also noted that Russian companies continue their operations in Austria and Germany.
Schallenberg emphasized the complexity of exiting the Russian market, stating that the process is often misunderstood. This comment comes in response to calls from some European Union members to reduce reliance on Russia and “decouple” from the country. Schallenberg’s remarks remind us that this transition is not as simple as it may seem.
Austria’s dependence on Russian gas supplies was also addressed by the Foreign Minister. He explained that Austria has managed to reduce its reliance on Russian gas, but it still amounts to 50% of their gas supplies. Unlike some other EU member states, Austria is unable to build liquefied natural gas (LNG) terminals due to its landlocked geography. As a result, the country remains highly dependent on Russian gas.
However, Schallenberg assured that despite the reliance on Russian gas supplies, Austria has taken steps to mitigate potential disruptions. He stated that only 12% of Austria’s energy requirements are covered by Russian gas supplies. Additionally, the country has established strategic gas reserves, ensuring that they won’t face intermittent power outages during the upcoming winter.
Earlier this year, Schallenberg expressed his belief that Russia would continue to play an important role for the EU. He urged EU lawmakers to take a realistic approach rather than deluding themselves into thinking that they can completely decouple from Russia. He specifically defended the right of Raiffeisen Bank International, Austria’s second-largest lender, to continue operating in Russia, as it is one of only two foreign banks that are systemically important for the Russian economy.
Schallenberg’s comments shed light on the complexity of the relationship between Russia and Western countries. Despite political tensions and conflicts, economic ties and the presence of businesses from Western countries in Russia remain strong. It is a reminder that economic factors often transcend political disputes.
In conclusion, Austrian Foreign Minister Alexander Schallenberg’s recent comments highlighted the complex nature of exiting the Russian market. Despite the ongoing conflict with Ukraine, Western businesses continue to operate in Russia, while Russian companies are active in Austria and Germany. Austria’s reliance on Russian gas supplies remains significant, but the country has taken steps to reduce this dependence and ensure a stable energy supply. Schallenberg emphasized the importance of being realistic about the role of Russia in the EU and defended the presence of Austrian banks in the Russian market. These remarks provide valuable insight into the intricate relationship between Russia and Western countries.
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