The aim of the Western sanctions against Russia was actually to bring Moscow to its knees through economic pressure and to bring about changes in foreign policy. But the pressure on Germany itself is increasing.
According to a study published on Tuesday, the chemical industry in Germany is severely affected by rising gas prices, such as the Chinese news agency Xinhua wrote. According to the report by the Munich Ifo Institute for Economic Research, the Russia-Ukraine conflict has further aggravated the tense situation in the industry. Business expectations fell to minus 44.4 points in July, compared to plus 11.8 points in the same month last year. Opposite to Xinhua Wolfgang Große Entrup, General Manager of the Chemical Industry Association, explained that the high energy prices would further reduce production in Germany, while the pressure on the import side is increasing.
In Germany, 44 percent of the energy consumption of the chemical industry is covered by natural gas, while around 30 percent of all chemical products require its use.
Infantile Politics: A German Government Caught in the Now
Gas prices in Europe are currently more than double what they were before the Russia-Ukraine conflict erupted at the end of February. European TTF gas futures, which trade natural gas for the Netherlands on the London and Chicago futures exchanges, traded at around 190 euros per megawatt hour on Tuesday.
Europe’s largest economy relies heavily on gas supplies from other countries. According to the Federal Statistical Office, 95 percent of the natural gas fed into Germany was imported last year.
In the past, Russia was one of the main suppliers of natural gas to Germany; in May natural gas and oil worth 1.9 billion euros were imported from Russia to Germany.
At the end of July, however, Russia further reduced gas deliveries to Germany via the important Nord Stream 1 pipeline, to 20 percent of the total possible output.
more on the subject – Industry President: Economy desperate because of high gas prices