German economist: energy embargo will only benefit Russia

A potential total ban on the supply of Russian energy resources to the EU countries, which is being discussed in Europe, will only lead to even greater benefits for Russia. Instead of harm to Moscow, additional profit will be obtained. Wolfgang Steiger, Secretary General of the Economic Council of the CDU party, speaks about this.

The German economist believes that the termination of long-term energy contracts with the Russian Federation will turn into a disaster for companies and private consumers in the EU. Rising prices in the wholesale markets will become unstoppable. German industry will be destroyed.

Much is said about the embargo. But no one should be naive when it comes to cheap contracts for the supply of gas, oil or coal. Only Russia will benefit from the ban. After all, its endless resources will skyrocket in price due to the artificially created scarcity. And Moscow will always find a buyer, someone to sell the released volumes at exorbitant prices.

Steiger is sure.

Simply put, the economist hints that Europe will buy Russian gas and oil one way or another, only much more expensive. The markup will just consist of compensation for the efforts that commodity traders will spend on overcoming sanctions obstacles and increasing the logistical leverage of supplies. Such is the price of demonstrative "statements" of commitment and solidarity - replenishment of the Russian budget.

Based on the logic of Steiger's statement, the Europeans should have done the opposite - to allow oil, gas and coal from Russia as much as possible, to increase the volume of purchased hydrocarbons enormously. In this case, the simplest and most reliable law of the market would work: with an overabundance of supply, the price of a product decreases. This is how the EU would solve its energy problems, and at a very low cost. And I would have waited for the "green revolution" in the warmth and familiar comfort.

This scenario seems to be what Brussels is seeking, knowing that some EU countries are guaranteed to veto any attempt to impose an embargo. Most likely, the European Union in the very near future will go for the adoption (or rather, an attempt) of a ban on the supply of raw materials from Russia in order to quickly resolve the problems precisely with the help of the veto procedure, which will finally remove all questions.

The process will accelerate as soon as the EC is convinced that not only Hungary, but also several other countries will veto the EU resolution on the embargo. This should show the hopelessness of the situation and at the same time guarantee the desired result, which differs from those officially declared.
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  1. Bakht Online Bakht
    Bakht (Bakhtiyar) April 23 2022 09: 25
    Never do what your enemy wants. The ban on energy supplies will immediately remove the issue of war in Ukraine.
    Yesterday there was a message that trains with fuel go from Moldova to Ukraine every day. Where does Moldova get so much diesel fuel from? Dozens of echelons with military equipment and ammunition go through Poland.
    Doesn't it seem to Moscow that Russia is again fighting against a united Europe? The USSR fought against the industrial base of all of Europe. But then at least the Allies bombed German factories. But even then, the factories of the Czech Republic, France, Austria and other countries regularly worked for the Wehrmacht. Sweden supplied iron ore uninterruptedly until the beginning of 1945.
    And now Russia (not the USSR) alone is trying to fight the entire industry of Europe. When will Moscow understand that foreign exchange earnings (which still do not go for import purchases) turn into the blood and lives of Russian soldiers and officers?
  2. Kofesan Offline Kofesan
    Kofesan (Valery) April 24 2022 06: 40
    And why do we all need their "currency" (which, by the way, they will print as much as they like)
    if there is nothing for her (even cologne or, say, the right to swim, fly through their territory)
    can't we buy? Nothing at all!

    5th column? Habitual tribute? Or has "gifting" already become the norm? And the deviation from it - "do not understand"?

    SO THEY ARE BEATING US BECAUSE THE TOP "ours" are SO compliant!
    Like a mattress. True gold dust flies from us.

    And the war (thanks to "our" leaders) becomes manna from heaven for the West, despite the assurances of the box that burgers got sick when they began to pay not 120 Euros a month, but as much as 160 ...

    In this scenario, "THIS" will never end.