BERLIN – A boycott of Russian oil and gas would have serious economic and social consequences in Germany and the rest of Europe, Chancellor Olaf Scholz told lawmakers on Wednesday.
Mr Scholz admitted that Germany has become dependent on Russia for its energy and promised to end its dependence as soon as possible, but said: “If we did this overnight, it would mean that our country and all of Europe into recession. †
“Hundreds of thousands of jobs would be at stake,” he added, speaking on the floor of the Bundestag, the German legislature.
The United States and some Eastern European Union countries, such as Poland and the Baltic States, have pressured the bloc to boycott Russian energy exports.
But others have refused to join the effort, including Hungary, which is hugely dependent on Russian oil, and Bulgaria.
Germany, the continent’s largest economy, is the most prominent opponent of a boycott. It depends on Russia for about 55 percent of its natural gas, 35 percent of its oil and half of its coal.
Robert Habeck, Germany’s vice chancellor and economy minister, has been working on alternative energy sources. He recently announced the construction of two liquefied natural gas terminals and visited Qatar this week to negotiate a deal for natural gas.
In a lengthy social media post last week, Mr Habeck said that even if Germany found alternative energy sources, it would remain dependent on Russian gas and oil for many months, if not years. Noting that expanding energy imports from Russia was a strategic goal under previous German governments, he said: “In hindsight, it was a serious strategic mistake. One that needs to be corrected quickly.”
But Mr Scholz told lawmakers: “It is in no one’s best interest if we deliberately endanger our economic substance.”
On Wednesday, Russia announced it would only accept rubles for energy payments, forcing Western countries to support the Russian currency to keep the flow of energy flowing.