Germany to create gas and coal reserves to reduce dependence on Russia

The German Minister of Economy and Energy, Robert Habeck, announced the creation of gas and coal reserves for next winter to reduce energy dependence on Russia.

Habeck explained that Germany depends on Russian gas for 55% of its supply and that the deposits this winter were particularly empty, although it has been possible “stabilize” the situation with additional purchases and supply is “guaranteed” even if Moscow cut off supplies.

However, the deputy foreign minister announced that before next winter the Government will implement a law that will force the operators of the deposits to fill them before the start of the cold season.

The same will happen with coal, of which Germany imports 50% from Russia, said Habeck, who appeared in Berlin, and announced the creation of a reserve to guarantee security of supply in case they occur “restrictions”.

Regarding oil imports, the minister estimated the dependence on Moscow at 35% and assured that the existing reserves would be enough to supply the country for 90 days, so the situation “can bear well”.

Habeck stressed that it is necessary to reduce dependence on fossil fuels to reduce emissions and face the great “structural crisis” of climate change, but also for a strategic and security issue.

“Energy policy is always also geopolitics”, he interjected, and explained that greater independence in this sense will contribute to making Germany “more sovereign and difficult to blackmail” when it comes to foreign policy.

To do this, apart from promoting the development of renewable energies, Habeck opted to diversify imports, for which, according to what he said, the need to build terminals to store liquefied gas (LNG) in Germany is imposed.

Regarding the rise in energy prices on the Stock Exchanges, the minister predicted that they will fall again in the short term, since the market is “large, global and elastic” and supply chains will absorb coal and gas, driving prices down again.

Habeck also spoke about the package of sanctions that will be announced this Thursday by the president of the European Commission (EC), Ursula von der Leyen, and indicated that, although they did not achieve the objective of avoiding war, they can contribute to reopening the diplomatic route.

The minister acknowledged that it will not be possible to prevent them from also affecting the German economy, which exports 25 billion euros worth of goods to Russia, but asserted that it is a “price” which is worth paying for.

Regarding the halting of the certification process of the Nord Stream 2 gas pipeline, Habeck indicated that the operator, controlled by the Russian company Gazprom, will not be on the European sanctions list, although with the suspension it has been achieved “the same effect”.