Jakarta, CNBC Indonesia – The sanctions imposed on Russia for the military attack on Ukraine “are taking its toll”. Germany is now taking its toll with rising energy prices.
According to economist Robert Habeck, this will have an impact on slowing down the economic recovery. The government has also pledged support for businesses hurt by the crisis.
“The consequences of sanctions and war are visible and the situation remains tense,” Habeck said after speaking to businesses on Thursday (3/3/2022) local time, as reported by Reuters.
“We hoped to have a recovery phase this spring. But now there are war consequences,” he said.
He hopes that the steps taken by the government will be effective. Including preventing a recession.
It is important to note that Europe has indeed experienced an insane increase in energy prices since mid-2020. This is due to the weakening of gas supply due to the recovery in demand due to the easing of Covid-19 cases (before the emergence of Omicron) but not accompanied by sufficient supply in the market.
Europe itself, including Germany, relies on Russian gas. This is because gas is considered the most bearish source of fossil energy, as renewable energy is not yet maximal.
Yesterday, Germany decided to reduce gas imports from Russia. Germany will again consider coal and nuclear.
“We will change direction to overcome dependence on gas imports,” German Chancellor Olaf Scholz said yesterday.
Germany also mentioned plans to replace Russian gas with liquefied natural gas (LNG) from the United States (US) or Qatar. A budget of US$ 1.7 billion is budgeted.
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