Today: Tuesday, 6 December 2022 year

Former Austrian Foreign Minister predicted hard times for Germany due to gas embargo

Former Austrian Foreign Minister predicted hard times for Germany due to gas embargo

An embargo on Russian gas will lead to hard times for Germany, former Austrian Foreign Minister Karin Kneissl said.

According to her, this opinion is shared by the German Central Bank and heads of large enterprises.

“The representatives of the Central Bank have a more cautious and watchful position. They would say that a complete embargo on gas imports would entail, first of all, huge and guaranteed losses in the industry,” Kneissl said.

The former minister believes that the refusal of fuel supplies from Russia will lead to massive layoffs of workers in the chemical industry, as well as to a recession much larger than economists predict.

“Managements of large industrial enterprises, such as the chemical concern BASF, will say:” No, we will not cope with this, very difficult times will follow, “Kneissl concluded.

As the result of sanctions, since April 1, Russia has been accepting payments for gas only in rubles. The importer must open a special account with Gazprombank, to which he will transfer funds in the currency specified in the contract. The bank will sell this currency on the Moscow Exchange and credit rubles to the account of the buyer of gas, from which settlements will be made with the supplier, Gazprom.