Germany still buys Russian gas via the Netherlands and Belgium

German non-profit environmental and human rights group Ulgewald revealed on Tuesday that Germany still buys Russian gas via the Netherlands and Belgium. The latter obtains gas from Russia in the form of her LNG.

“Ulgewald has published an overview of its gas suppliers to Germany, indicating, among other things, continued ties with Russia,” the group said in a statement.

According to the data, Germany obtains Russian natural gas after regasifying LNG arriving in the Netherlands and Belgium from Russia.

As of 2022, Russian gas will account for 6-11% of all gas that Germany acquires from Belgium, making it currently the third largest supplier of natural gas to Germany (excluding LNG). Urgewald said the share of Russian gas in Belgium’s supply could rise further in 2023, mainly due to increased LNG shipments from Russia to Belgium’s Zeebrugge port. However, the organization did not provide specific numbers for the Netherlands.

The NGO called on the German government to permanently halt purchases of Russian gas and start phasing out natural gas by 2035.

This is happening against the backdrop of EU sanctions against Russia, which were triggered by the Russian government launching a special military operation in Ukraine following years of provocation by Western countries.

Germany’s industrial hollowing is closer than ever

The loss of cheap Russian natural gas due to the Ukraine war was the “final blow” for Germany as German manufacturers struggle to keep their products cost-competitive. The country’s reign as an industrial power appears to be “drawing to a close.” bloomberg news he said on February 11th.

In 2022, most Russian imports will be boycotted as a “punishment”, further delaying Germany’s industrial production, which had already declined since 2017. Bloomberg has announced that century-old factories are closing and other companies are moving production lines to lower-cost countries. bloomberg Said.

Read more: More bad news for the German economy. Growth is unlikely in Q1 2024

“To be honest, we don’t have much hope,” Stefan Kelbert, CEO of GEA Group AG and machinery producer, said, adding with concern. Many things will have to change quickly. ”

The Confederation of German Industry published a study last September that found that concerns about energy security and energy costs are the top reasons for moving investments abroad.

BASF SE and LANXESS AG, Europe’s largest chemical manufacturers, are laying off thousands of employees, as chemical makers are among those most affected by the Russian gas boycott. French tire maker Michelin and U.S. rival Goodyear are also closing or downsizing plants in Germany.

German economy to worsen in 2024

Report by bloomberg Earlier this month, it emerged that investors lending money to German companies are demanding higher interest rates than companies in other parts of the eurozone. This is due to several circumstances, including the economic downturn, real estate issues, and Germany’s reputation for having the highest business crisis score in Europe.

Brian Mangwilo, a fund manager at Barings, told Bloomberg that the German economy in particular is not only slowing down like other manufacturing economies, but also faces challenges in the auto sector due to competition from China. Told.

“Germany is in real trouble… All the big manufacturing economies are slowing down, and in Germany this has been exacerbated by rising energy costs. Competition from China also poses challenges for the auto sector. there is.”

Speaking at a Bloomberg event in Frankfurt, German Finance Minister Christian Lindner said the country’s inability to generate economic growth is leading to further poverty.

“We are no longer competitive… We are getting poorer and poorer because there is no growth,” said Lindner, leader of Germany’s Free Democratic Party. We are falling behind. ”

Read more: German investment in China rises to record high: Reuters