Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Germany agrees gas deal with Qatar to help end dependency on Russia

Germany agrees gas deal with Qatar to help end dependency on Russia

Long-term contract will not immediately stop flow of money to Russia, for which German ministers have been criticised

Germany has agreed a contract with Qatar for the supply of liquefied natural gas (LNG) that will help the European country wean itself off its dependency on Russian energy.

But the contract is a long-term solution and will do little to slow the current flow of European money into Russian coffers, estimated to be worth $285m (£217m) a day for oil alone.

Germany’s economy minister, Robert Habeck, announced the deal after discussions in Doha, where he was accompanied by German business leaders. “It is great that I can say it was firmly agreed to enter into a long-term energy partnership – a cooperation,” Habeck said. “The companies that are now involved in this journey will enter into contract negotiations with the Qatari side.” He gave no detailed figures on planned imports from Qatar.

Habeck, a Green party leader in the German coalition government, has faced sharp criticism in recent weeks for refusing to accept a complete energy embargo on Russia, as sought by the Ukrainian president Volodymyr Zelenskiy. In a speech to the Bundestag last week, Zelenskiy accused Germany of having only three priorities: “economy, economy, economy”.

Polling shows a majority of Germans would be prepared to make sacrifices, including higher gas prices, if it helped defeat Russia, but the German government either does not believe the polling or thinks the public do not understand the real risk of mass unemployment that an embargo would entail.


Habeck’s visit to Qatar follows Boris Johnson’s apparently fruitless trip to Saudi Arabia and the United Arab Emirates in an attempt to persuade two traditional British allies in the Gulf to boost oil production.

Qatar is expected to almost double its production of LNG by 2025. Habeck promised that Europe was in the process of reducing its flow of energy from Russia to zero, but at present Germany has no LNG terminals. Two have just been given the go-ahead, at Brunsbüttel and Wilhelmshaven, but may take three years to build.

Germany imported about 56bn cubic metres of natural gas from Russia in 2020. Nearly 55% of its gas imports came from Russia, with 40% of the demand for gas in Germany coming from industry. The EU’s total gas imports from Russia are about 168bn cubic metres.

In 2020, Qatar exported 106bn cubic metres, selling the bulk of the product to Asian markets.

In Doha, Habeck stressed the future for Europe was to develop a diversity of suppliers, and there would be little point in Germany transferring its dependency from one supplier to another. Germany is also in talks with Norway, Canada and the US. He admitted previous German administrations had made a mistake by becoming so dependent on Russia.

Moscow also provides 34% of German oil, predominantly along the Druzhba pipeline.

As a result Germany has insisted the EU does not sanction two banks that service German purchases of Russian energy.

The former head of the Ukrainian state energy company Naftogaz, Andriy Kobolyev, believes Germany could take a tougher line by continuing to take Russian energy but refusing to pay for the gas until Russia pulled out of Ukraine. He said Russia cannot simply turn off the gas supplies, and there would be enough to get Germany through the next winter.

Habeck has ruled out reversing the planned switch-off of nuclear power in Germany, scheduled for the end of 2022. But he is said to be open to extending the life of coal powered stations, all due to close by 2030.

Disputes inside Germany rage over whether it would be possible to cut off Russian energy.

Bruegel, a Brussels-based thinktank, has suggested the EU could survive next winter if all Russian pipeline imports were halted, though it would require painful measures including power rationing.

The EU itself has said it aims to reduce the bloc’s gas imports from Russia by nearly two-thirds by the end of 2022, and to make Europe independent from all Russian fossil fuels well before 2030.

The French finance minister, Bruno Le Maire, hinted France was willing to go further, saying: “Should we immediately stop buying Russian oil, should, a little bit further down the line, we stop importing Russian gas? The president has never ruled out these options.”

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
The Ledger Will Not Trust on Faith
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
Ukrainian Drone Barrage Kills Eight and Strikes Russian Logistics Network
The Ten World Cup Finals That Defined Football History
Smartphones Are Getting More Expensive, Sales Are Collapsing, and Even Apple Admits: "Prices Will Rise"
The Monaco Bombing Has Become a Test of Ukraine’s Intelligence Accountability
Leadership Change and Strategic Rivalry Redraw the Political Map
The AI Race Enters Its Infrastructure Era
Britain Nationalises British Steel to Protect Scunthorpe Production and Strategic Supply
French National Assembly Overrides Senate to Pass Historic Assisted-Dying Legislation
Spanish Prime Minister's Wife Ordered to Stand Trial as Corruption Probes Encircle Governing Party
Zelensky Faces Kyiv Protests Over Ousting of Dynamic Ukrainian Defense Minister
Thomas Tuchel Faces Fierce Backlash After Tactical Retreat Costs England World Cup Final Berth
A Quiet Bastille Day: France Grapples with World Cup Heartbreak and Leftover Fireworks
Spain in Ecstasy: "We Feel Unbeatable, We Taught the Whole World a Lesson"
Spain and UK Dismantle Gibraltar Border Following Landmark Schengen Integration Treaty
Hungary's "Puppet" President to Be Ousted, Orbán Fumes: "Democracy Is Dead"
Forget Tinder: The Surprising Platform Where People Find Love
Harvard Astrophysicist to Lead U.S. Scientific Advisory on Unidentified Aerial Phenomena
Emergency Sirens Activated Across Bahrain as Interior Ministry Issues Shelter Directives
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
×