Ukraine war: Germany accuses Russia of ‘weaponising’ energy in escalation of gas feud

Economy Minister Robert Habeck said ‘energy can be used powerfully in an economic conflict’ after Moscow sanctioned Gazprom Germania and reduced supplies to Berlin

He downplayed the impact, saying Germany, the largest buyer of Russian gas, can cope with the disruption

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German Economy Minister Robert Habeck. Photo: dpa via AP

Published: 8:32pm, 12 May 2022Updated: 9:23pm, 12 May 2022

Russia reduced natural gas supplies to Germany in retaliation over Europe’s penalties over the war in Ukraine, prompting a government minister to accuse Moscow of using its energy exports as a “weapon.”

A unit of Gazprom PJSC that was seized by Germany is no longer receiving all contracted volumes, according to German Economy Minister Robert Habeck, who is also the vice chancellor in the ruling coalition in Berlin. He downplayed the impact, saying Europe’s biggest economy is receiving gas from alternative sources and can cope with the disruption.

Russia’s decision to sanction Gazprom Germania GmbH shows that “the confrontation over energy is a weapon,” Habeck said on Thursday in a speech to the lower house of parliament. “Energy can be used powerfully in an economic conflict.”

The reduction in supplies to the unit marks the latest escalation in Europe’s stand-off with Russia over energy. Natural gas prices in the region jumped on the German retaliation and disruptions to a key transit route through Ukraine. Russia had already cut supplies to Poland and Bulgaria amid a dispute over payment terms.

Germany is the largest buyer of Russian gas, which accounts for about 35 per cent of the country’s supplies, down from more than half before the invasion of Ukraine in late February.