Germany will pay a record amount for Russian oil and gas in 2022

At the end of 2022, Germany will pay Russia for oil and gas 3 billion euros more than a year earlier. This is double the amount paid last year. The payment amount will  reach a record 33.9 billion euros, reports Greenpeace.

According to Greenpeace, Germany's spending on Russian oil is expected to grow from 11.4 billion euros in 2021 to 14.3 billion euros in 2022. Spending on Russian gas will double - from 8.8 billion euros to 17.6 billion euros. Another 2.1 billion euros will be paid for Russian coal.

According to Greenpeace, energy supplies will bring Russia a record income of 290 billion euros in 2022. According to the report, Russia is "very dependent on revenues from fossil fuel exports," and more than a third of Russia's state budget is financed by energy profits. At the same time, Germany is the largest buyer of Russian gas and the second largest consumer of Russian oil products, Greenpeace notes.

According to the organization, in order to impede the financing of the Russian war against Ukraine, it is necessary to impose an embargo on the Russian coal, oil and gas. However, the German authorities have so far been avoiding  these measures "fearing high economic costs." As an "intermediate" alternative, Greenpeace proposes to introduce a tax on Russian gas.

Greenpeace provides 2 options: introduce a percentage surcharge on the contract price (for example, 50%) or set a marginal import price at the level that it was before the start of the invasion of Ukraine. Greenpeace recalls that from 2015 to 2020, average gas price was 16 euros per MWh.

The EU is preparing the sixth package of sanctions against Russia, and it is expected to include oil related sanctions. At the same time, the EU states that a complete embargo on Russian oil will take time.

German Foreign Minister Annalena Berbok said that Germany will stop importing Russian oil by the end of the year.

  Germany, Russia, War in Ukraine

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