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ENERGY

Germany raps US over ‘astronomical’ gas prices

Germany's economy minister on Wednesday accused countries including the US of charging too much for gas as Europe's biggest economy struggles to rebalance its energy mix without Russian supplies.

Economics Minister Robert Habeck
Economics Minister Robert Habeck (Greens) sits in parliament during a vote on nuclear energy. Photo: picture alliance/dpa | Kay Nietfeld

“Some countries, even friendly ones, are achieving astronomical prices in some cases,”

Robert Habeck told the Neue Osnabruecker Zeitung newspaper. “This naturally brings problems with it, which we have to talk about,” he said.

Russia’s invasion of Ukraine has caused a dramatic energy crisis in Germany, which previously relied on Moscow for 55 percent of gas deliveries.

Russia has been gradually squeezing supplies since invading Ukraine in what Berlin believes is retaliation for its support for Kyiv.

To fill the gap, Berlin is investing in more expensive liquefied natural gas (LNG).

Germany and other European countries have thus turned to the United States, which now provides 45 percent of European LNG imports — up from 28 percent in 2021.

“The US turned to us when oil prices shot up, and as a result national oil reserves were also tapped in Europe,” Habeck said. “I think such solidarity would also be good for curbing gas prices.”

Habeck also called on the EU to coordinate gas purchases to help bring prices down.

The bloc should “bundle its market power and orchestrate smart and synchronised purchasing behaviour among EU states so that individual EU countries do not outbid each other and drive up world market prices”, he said.

Germany last week announced a 200-billion-euro ($199-billion) fund to shield consumers from soaring energy prices.

However, the plan has been criticised by France and key members of the European Commission, who are calling for EU-wide solutions to the energy crunch.

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UKRAINE

German economy minister makes unexpected visit to Ukraine

German Vice Chancellor and Economy Minister Robert Habeck unexpectedly arrived in Kyiv on Thursday to discuss post-war reconstruction and show support after Russian attacks on key Ukrainian infrastructure.

German economy minister makes unexpected visit to Ukraine

“This visit comes at a time when Ukraine needs all the support it can get in its fight for freedom,” Habeck told reporters in the Ukrainian capital.

“And it is a fight for freedom, that’s the important thing that the world, Europe and Germany mustn’t forget,” he said, adding that Ukraine was “fighting for the values that define Europe”.

The trip comes after Germany at the weekend announced it was sending an additional Patriot air defence system to Ukraine after pleas from Kyiv for its Western backer to urgently help foil Russian attacks.

Ukraine has said it is running out of weaponry to shoot down Russian missiles and drones as Moscow ramps up attacks on energy infrastructure.

German Chancellor Olaf Scholz on Wednesday urged fellow EU leaders to urgently follow Berlin’s lead and send more air defence systems to Ukraine.

Habeck, who was accompanied by a business delegation on the trip, will hold talks with President Volodymyr Zelensky.

He will also meet with Ukrainian officials to discuss emergency aid and business ties as well as preparations for the annual Ukraine Recovery Conference to be held in Berlin in June, the German economy ministry said in a statement.

“Comprehensive support for Ukraine also includes support for a resilient energy supply and reconstruction. Private sector investment is crucial for this to succeed,” Habeck was quoted as saying in the statement.

The World Bank has estimated the total cost of reconstruction facing Ukraine more than two years since the start of the war is at least $486 billion.

OPINION: Germany’s timid strategy risks both Ukraine’s defeat and more war in Europe

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