Zelensky slams Germany for not doing enough for Ukraine
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Russia’s invasion of Ukraine led to the price of wholesale gas skyrocketing over the past year, particularly since Russian President Vladimir Putin began squeezing gas exports to the EU in the months preceding the invasion. As a result of the price increases, German energy intensive industries, which are heavily dependent on Russian gas supplies, have been the worst hit.
Thus, EU’s competition authority greenlighted a €5billion (£4,3billion) German scheme to support energy and trade intensive companies across industrial sectors.
The EU Commission was slammed for approving this move, noting that as European countries scramble to secure gas supplies, this scheme grants German industries a huge advantage over the rest of the bloc.
Georg Zachmann, an energy expert at Brussels think-tank Bruegel tweeted: “DG COMP greenlights German scheme to give gas-intensive companies up to €5billion to continue to consume natural gas.
“This allows German companies to outcompete other Europeans over a limited amount of gas and sends money via higher prices to Russia!”
Europeans online were furious, with one person tweeting: “Germany first, again. But where are the 5billion for consumers?”
Germany is heavily reliant on Moscow or natural gas exports, with experts arguing that Berlin is effectively fuelling Putin’s war machine by handing him millions in oil and gas revenues.
Germany even bowed down to Putin’s demands a few months ago, opening up a rubles account in Russia’s Gazprombank to pay for gas supplies.
This support scheme after energy-intensive industries like steel and chemicals were left crippled by the high gas prices, grinding German production to a halt.
On Thursday, EU competition chief Margrethe Vestager said: “Energy and trade intensive companies have been hit particularly hard by the current geopolitical crisis and the consequent increase of energy prices.
“This €5billion scheme will enable Germany to mitigate the impact of the rising input costs on these companies and support the continuation of their activities in this difficult context.
Ms Vestager said the EU “continues to stand with Ukraine and its people”, adding it is working with member states to ensure “a level playing field in the Single Market.”
Critics also slammed this scheme for encouraging German industries to use more energy at a time when gas supplies flowing into the EU are rapidly dwindling.
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One person said on Twitter: “The federal government’s strategic will-o’-the-wisp in one piece of news: green light for gas consumption subsidies for industry”.
The bloc fears that these gas shortages could continue to fall over the coming weeks if Putin decides to cut off deliveries of gas flowing through the Nord Stream 1 pipeline.
Nord Stream 1, a major gas pipeline from Russia to Germany, was brought out of action on Monday for routine maintenance.
It is due to get back to operation on July 21 but Berlin is concerned Moscow may not resume the flow of gas as scheduled.
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