Russian President Vladimir Putin told Austrian Chancellor Karl Nehammer during their meeting earlier this week that gas supplies from Russia to Austria are secure and the country can continue to pay for them in euros.
This was stated by Nehamer to the national news agency APA. Nehammer met with Putin near Moscow on Monday and has so far made no public comment on their talks on the security of gas supply to Austria. The country receives 80% of its natural gas from Russia and opposes the European Union’s immediate gas embargo against Moscow, saying it is not possible at the moment.
Putin said gas supplies had been secured, that Russia would deliver the agreed quantities, and that payments could continue to be made in euros, Nehamer said in an interview with the agency.
A ban on Russian gas imports would be detrimental to this sector in Germany
A possible ban on imports of Russian natural gas would be detrimental to paper production in Germany, industry officials said.
“A gas embargo would in practice mean a halt to production for the paper industry,” said Alexander von Reibnitz, chief executive of the Die Papierindustrie industrial association. The war is already affecting paper producers due to the higher cost of raw materials.
“The economic consequences of the war in Ukraine are now drastically exacerbating strong price pressures on our industry,” said Steffen Wurt, chairman of the German Corrugated Industry Association (VDW).
Natural gas is the most important energy source for the paper industry in Germany. 55 percent of the sector’s energy comes from gas, and only 15 percent can be replaced by other energy sources by next winter, Reibnitz said. Therefore, an embargo on Russian natural gas imports would mean a halt to production, which affects many sectors: from food and medicine packaging, as well as medical and household materials, to special quality paper used in the manufacture of filters. Printed paper for newspapers, magazines, catalogs, or brochures will also be affected, Reibnitz added.
If gas supplies are cut off, the German economy will experience a sharp recession
The war in Ukraine has already reduced Germany’s growth prospects, but a total ban on gas imports from Russia, on which it depends heavily, could send the country into recession, according to a report by the country’s leading economic research institutions.
The report, released on Wednesday, estimates that Germany will grow by 2.7 percent this year (compared to a forecast of 4.8 percent), but will only grow by 1.9 percent if gas imports are banned.
In 2023, GDP will grow by 3.1%, but will shrink by 2.2% in the event of a supply shock, experts say.
The Joint Economic Forecast is published twice a year on behalf of the German Ministry of the Economy.
“If gas supplies are cut off, the German economy will experience a sharp recession,” said Stefan Kuts, director of business cycles and growth at the Institute for World Economy in Kiel.
Berlin has opposed a ban on Russian gas, despite calls from Ukraine, the Baltic states, and Poland, which hope to end Russian President Vladimir Putin’s war against Ukraine. German Chancellor Olaf Scholz said this would lead to mass poverty in Europe. Wednesday’s forecast will support him.
The report also says that a sudden shutdown in gas supplies will threaten 220 billion euros in German economic output; additional fuel inflation of up to 7.3 percent this year, compared to a baseline scenario of 6.1 percent; and a reduction in the contraction in unemployment expected from 5% this year to 5.2%.
Related Posts
- Putin could cut off supplies to Europe. But what will he do with the excess gas?
Those who do not pay will not receive the gas, Putin said. Is it possible…
- The collective Putin of the Russian people - what to do with him
Yaroslav Hrytsak (born 1960) is a Ukrainian historian and publicist. Professor of Modern and Contemporary…
- Erdogan held key talks on Ukraine and gas
Turkish President Recep Tayyip Erdogan held telephone talks Sunday with Austrian Chancellor Karl Nehamer before…
- YouTube blocks the channel of the Russian parliament
The blocking of the YouTube channel of the State Duma "Duma TV" is related to…
- Germany's largest gas storage facility has shut down
The Rheden underground storage facility, one of the largest in Europe and the largest in…
- Sanctions against Russia reveal Putin's secret privacy
Western sanctions aimed not only at the Russian president's inner circle but also at his…
- Europe freezes $ 32 billion in assets of Russian oligarchs
EU governments have frozen about 30 billion euros ($ 32.6 billion) in assets related to…
- Moscow promises a legal battle against the seizure of Russian assets
Moscow will fight attempts to seize Russian property abroad in courts around the world. This…
- YouTube blocked the famous Russian song "Do Russians want war"
Roskomnadzor explained the blocking on YouTube of the song "Do the Russians Want War", brilliantly…
- According to science, Putin and Russia are fascists
New York-born author Dr. Alexander Motil is a professor of political science at Rutgers-Newark University.…
- Dallas Federal Reserve: A global recession is inevitable without Russian oil
The world economy will probably not be able to avoid a recession without a resumption…
- Russian ambassadors are turning quiet diplomacy into a fierce front
On February 24, Russia invaded Ukraine and began virtually without cause the most destructive conflict…
- The Finns want to join NATO because of Russian aggression
Finland's eastern border is over 1,300 kilometers long. It separates the country from Russia. Peace…
- The Russian Consul General in Antwerp is among those declared persona non grata by Belgium
Russia's Consul General in Antwerp Georgi Kuznetsov is among 21 recently announced 21 Russian diplomats…
- The EU is allocating 3.5 billion euros to countries that have sheltered Ukrainian refugees
The Council of the EU announced today that it has finally approved the allocation of…
- Biden advises India: It is not in your interest to increase imports of Russian energy sources
US President Joe Biden told Indian Prime Minister Narendra Modi during their virtual meeting today…
- Russian conductor Valery Gergiev with properties abroad for over 100 million dollars
Valery Gergiev, one of the world's most famous Russian conductors and a member of a…
- The dehumanization of the enemy
In modern war, and not only it, but an extremely effective means of mobilizing the…
- The Z symbol is appearing more and more often in Germany
The Z symbol has become a sign of support for Russia's war in Ukraine. It…
- Volodymyr Zelensky: This is not just a war, it is much worse
On March 27, Zelensky gave his first major interview with Russian journalists since the start…
More Stories
Europe has spent half a billion euros on energy compensation
Governments in Europe have allocated nearly €500 billion over the past year to protect citizens and companies from rising gas...
The crisis also turned second-hand cars into a hard-to-afford luxury
The coronavirus epidemic and the war in Ukraine have made changing a car a difficult task with many unknowns and...
Smart technologies reduce electricity bills
As summer temperatures rise across the US, many consumers are seeing an increase in their electricity bills as well. The...
Bill Gates: The next chapter in the history of the planet is still being written
World-famous entrepreneur Bill Gates talks about Kim Stanley Robinson's book "Ministry of the Future", which both scares and gives hope....
Fall in commodity prices, has inflation peaked?
The fall in the prices of many raw materials - corn, flour, honey, and others - raises hopes that a...
Inflation in June in Switzerland rose to 3.4%
Inflation in Switzerland in June in Switzerland rose to 3.4% in June, the first time Swiss inflation exceeded 3% since...