The European Union has failed to find a deal on the roof at the price of Russian gas. There remains the opposition of countries such as Germany and the Netherlands, fearful (not without reason) that Russia will follow up on the threats and leave Europe without gas. The German economy is the most suffering in the Old Continent with the energy crisis in progress. Before the war between Russia and Ukraine, 55% of its gas imports came from Moscow. As of June 30, Berlin had managed to cut the percentage to 26%. The problem is that dependence on Russian gas remains, indeed possibly becoming even stronger, as some data show. In June, it emerged that Germany bought from Gazprom at prices around one third of the average prices charged by the Russian giant to the rest of Europe.
The Russian gas rip-off
Germany has always had a price advantage, thanks to the high volumes of Russian gas purchased over the years. But it was just 10% at the beginning of the year, while it is close to two-thirds in the summer. The data was released by Destatis, the federal statistical institute. In other words, the German economy is suffering from lower imports of Russian gas, but at the same time it is increasing its advantage over production activities in the rest of Europe. German households themselves pay less for their bills than Italian, French, etc. for the same consumption.
The speech would be broad. In this discount applied to Germany, Gazprom would probably take into account the economies of scale achieved by the high volumes exported, as well as the proximity of the network to more distant countries such as Italy.
The rest would be done by the long-term contracts signed over the years between Moscow and Berlin. However, the suspicion arises that the German opposition to the gas price ceiling is no longer the result of purely economic reasoning, but of geopolitical interests.
Germany deals under the table with Putin
Under the table Germany would continue to do business with Vladimir Putin, the hated enemy of the facade. With the consequence that sacrifices would be imposed on other countries, while the Germans would still try today to obtain favorable conditions in commercial relations. The paradox is that the European Union has demanded, albeit in a non-binding way, that member states cut their energy consumption by 15% (Italy by 7%), in order to help suffering economies such as Germany. . To be brutal, the Italians have to reduce the thermostat degrees to help the Germans, who in turn screw the Italians by doing business with Putin to pay less than half of them for Russian gas..
Is it acceptable that the de facto leader of the Union still barters the fate of the entire continent with Putin today? Because that’s what it is. As long as Moscow has a keen ear to her interests in some major European chancellery, its leverage over the Union will remain strong through the Russian gas threat. And the war in Ukraine will not cease, thanks to the proceeds collected by exporting raw materials at abnormal prices. All this while in countries like Italy we are hunting for the true or alleged pro-Russian in this or that camp. Could anyone in Washington read the June data?CopyAMP code