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As we detailed yesterday, almost two months after Europe rushed to declare it would impose unprecedented sanctions on Russia in response to Putin’s invasion of Ukraine with no regard for how such sanctions would boomerang and cripple its own economies, the old continent which was and still remains hostage to Russian energy exports, is finally grasping the underlying math which was all too clear to Vladimir Putin long ago.

The European Union’s executive arm said yesterday that the currency bloc’s economy would expand about 0.2% this year, with inflation topping 9%, as governments struggled to replace the imports.

This severe stagflationary scenario is highlighted by Siegfried Russwurm, president of the Germany’s biggest industry association BDI, warning that the cessation of Russian gas deliveries would have a dire effect on the German economy.

“The consequences of cutting off Russian gas supplies would be catastrophic,” he told tabloid Bild am Sonntag in an interview published at the weekend.

Russwurm added that cutting off Russian gas would deprive businesses of fuel in Germany, forcing businesses to close production lines.

“In this situation many companies will be completely cut off gas supplies. In many cases, affected businesses will be forced to stop production, some businesses may never be able to start again,” he warned.

Europe’s “sudden realization” of just how destructive pushing through with full-blown sanctions will be, somewhat similar to that of Elon Musk who “learned” about the millions in Twitter spam accounts only after bidding $44 billion – is why over the weekend, Bloomberg reported that the European Union is set to fully water down its so-called sanctions and to offer gas importers a solution to avoid a breach of sanctions when buying fuel from Russia while satisfying President Vladimir Putin’s demands over payment in rubles.

…click on the above link to read the rest of the article…

Megalopolis x Russia: Total War

May 8, 2022

Megalopolis x Russia: Total War

After careful evaluation, the Kremlin is rearranging the geopolitical chessboard to end the unipolar hegemony of the “indispensable nation”.

But it’s our fate / To have no place to rest, / As suffering mortals / Blindly fall and vanish / From one hour / To the next, / Like water falling / From cliff to cliff, downward / For years to uncertainty.

Holderlin, Hyperion’s Fate Song

Operation Z is the first salvo of a titanic struggle: three decades after the fall of the USSR, and 77 years after the end of WWII, after careful evaluation, the Kremlin is rearranging the geopolitical chessboard to end the unipolar hegemony of the “indispensable nation”. No wonder the Empire of Lies has gone completely berserk, obsessed in completely expelling Russia from the West-centric system.

The U.S. and its NATO puppies cannot possibly come to grips with their perplexity when faced with a staggering loss: no more entitlement allowing exclusive geopolitical use of force to perpetuate “our values”. No more Full Spectrum Dominance.

The micro-picture is also clear. The U.S. Deep State is milking to Kingdom Come its planned Ukraine gambit to cloak a strategic attack on Russia. The “secret” was to force Moscow into an intra-Slav war in Ukraine to break Nord Stream 2 – and thus German reliance on Russian natural resources. That ends – at least for the foreseeable future – the prospect of a Bismarckian Russo-German connection that would ultimately cause the U.S. to lose control of the Eurasian landmass from the English Channel to the Pacific to an emerging China-Russia-Germany pact.

The American strategic gambit, so far, has worked wonders. But the battle is far from over. Psycho neo-con/neoliberalcon silos inside the Deep State consider Russia such a serious threat to the “rules-based international order” that they are ready to risk if not incur a “limited” nuclear war out of their gambit…

…click on the above link to read the rest of the article…

EU Pushes To Break “Energy Taboo” With Proposed Ban On Russian Coal Imports

April 5, 2022

EU Pushes To Break “Energy Taboo” With Proposed Ban On Russian Coal Imports

Update (0825ET): As EU ambassadors meet on Tuesday to discuss another proposal on Russian sanctions, German Foreign Minister Annalena Baerbock insisted that the EU would “completely end” its fossil fuel dependence on Russia, starting with coal.

Of course, as we noted below, Germany is among the most dependent EU economies on Russian energy. Weaning its economy off Russian energy without triggering a major domestic crisis and “total collapse.”

US equity futures tumbled on the news as investors braced for more international fallout from increasing tensions between Europe and the Russians, which could lead to even higher energy prices.

* * *

Not to be outdone by tiny Lithuania (which claims to have officially weaned itself off Russian gas imports by building an LNG terminal), the European Commission has devised a controversial proposal to ban imports of Russian coal, along with a host of other measures comprising a new sanctions package to be introduced on Tuesday, according to reports from WSJ, Reuters and a host of other media outlets.

Along with banning imports of Russian coal, the package also calls for an import ban on rubber, chemicals and other products from Russia worth up to €9 billion a year.

If passed, the proposal would mark the first energy sanctions on Russia since the start of the conflict in Ukraine. Although it wouldn’t touch oil and gas, such a ban would break the so-called “energy taboo”, according to Bloomberg’s Javier Blas.

While thermal coal isn’t nearly as critical as oil and gas, it’s still a “big deal,” Blas pointed out.

Coal-fired power plants are still being used across the EU, though most member states expect to completely phase them out by 2030. Russia has the second-largest coal reserves in the world. In 2020, it mined 328 million metric tons, making it the sixth-largest producer globally…

…click on the above link to read the rest of the article…

German Retailers To Increase Food Prices By 20-50% On Monday

April 3, 2022

German Retailers To Increase Food Prices By 20-50% On Monday

Just days after Germany reported the highest inflation in generation (with February headline CPI soaring at a 7.6% annual pace and blowing away all expectations), giving locals a distinctly unpleasant deja vu feeling even before the Russian invasion of Ukraine broke what few supply chains remained and sent prices even higher into the stratosphere…

… on Monday, Germany will take one step toward a return of the dreaded Weimar hyperinflation, when according to the German Retail Association (HDE), consumers should prepare for another wave of price hikes for everyday goods and groceries with Reuters reporting that prices at German retail chains will explode between 20 and 50%:

GERMAN RETAIL CHAINS TO INCREASE FOOD PRICES BY 20-50% FROM MONDAY

Even before the outbreak of war in Ukraine, prices had risen by about five per cent “across the product range” as a result of increased energy prices, HDE President Josef Sanktjohanser told the Neue Osnabrücker Zeitung on Friday. With Russia’s invasion hitting economies and the supply chain harder, yet another series of price increases is on the horizon.

“The second wave of price increases is coming, and it will certainly be in double figures,” Sanktjohanser warned, cited by The Local.

According to the president of the trade association, the first retail chains have already started to raise their prices in Germany – and the rest are likely to follow.

“We will soon be able to see the impact of the war reflected in price labels across all the supermarkets,” said Sanktjohanser.

Recently, popular retail chains such as Aldi, Edeka and Globus announced that they would be forced to raise their prices. At Aldi, meat and butter will be “significantly more expensive” from Monday due to price hikes from its suppliers.

…click on the above link to read the rest of the article…

German Chemical Giant Warns Of “Total Collapse” If Russian Gas Supply Cut

April 1, 2022

German Chemical Giant Warns Of “Total Collapse” If Russian Gas Supply Cut

CEO of Germany’s multinational BASF SE, the world’s largest chemical producer, has warned that curbing or cutting off energy imports from Russia would bring into doubt the continued existence of small and medium-sized energy companies, and further would likely spiral Germany into its most “catastrophic” economic crisis going back to the end of World War 2.

Company CEO Martin Brudermuller issued the words in an interview with Frankfurter Allgemeine newspaper just ahead of German officials by midweek giving an “early warning” to industries and the population of possible natural gas shortages, as Russia appears ready to firmly hold to Putin’s recent declaration that “unfriendly countries” must settle energy payments in rubles, related to the Ukraine crisis and resultant Western sanctions.

According to Bloomberg he mused that while “Germany could be independent from Russia gas in four to five years” it remains that “LNG imports cannot be increased quickly enough to replace all Russian gas flows in the short term.”

*CEO of BASF Martin Brudermüller, file image*

But in the meantime, Brudermuller described that “It’s not enough that we all turn down the heating by 2 degrees now” given that “Russia covers 55 percent of German natural gas consumption.” He emphasized that if Russian gas disappeared overnight, “many things would collapse here” – given that “we would have high levels of unemployment, and many companies would go bankrupt. This would lead to irreversible damage.” He continued:

“To put it bluntly: This could bring the German economy into its worst crisis since the end of the Second World War and destroy our prosperity. For many small and medium-sized companies in particular, it could mean the end. We can’t risk that!”

…click on the above link to read the rest of the article…

Germany Scrambles To Ration Gas After Refusing To Make Payments In Rubles

March 30, 2022

Germany Scrambles To Ration Gas After Refusing To Make Payments In Rubles

Now that Moscow has doubled down on its demands that its European “partners” pay for its oil and gas in rubles instead of euros (which, as the bloc already demonstrated, can be easily confiscated in the name of “sanctions”), the German government is digging in its heels as the payment dispute threatens to precipitate problematic energy shortages in Europe’s largest economy.

The FT reported Wednesday that German Energy Minister Robert Habeck has activated the “early warning phase” of Germany’s gas emergency law, which was adopted to help ration supplies in the face of a severe shortage. The decision will alert German consumers and businesses to do what they can to conserve energy.

Too bad President Biden and the US will take years to reroute their promised LNG exports (and even so, they will likely never be able to fully compensate for Russian supplies).

Habeck issued the warning for fear that Moscow would swiftly move to cut off energy exports to one of its biggest customers in Europe over its refusal to make payment in rubles, which Habeck has insisted would be a violation of the two sides’ contract.

The move was triggered by German concern that Russia might cut supplies to the country and its neighbors because they are rebuffing Moscow’s efforts to force payment for gas imports in rubles.

After demanding last week that “hostile states” pay for its gas and oil in rubles (although it hinted that gold and cryptocurrency might also be considered), Moscow said it wouldn’t share its resources “for free” after the G-7 aggressively repudiated the Russians’ request.

“We will definitely not supply oil and gas for free, that’s for sure. It’s hardly possible and reasonable to engage in charity in our situation,” Putin spokesman Dmitry Peskov said earlier this week.

…click on the above link to read the rest of the article…

“Energy Shortages Could Threaten Social Cohesion”: Germany Warns Against Ban On Energy Imports From Russia

March 6, 2022

“Energy Shortages Could Threaten Social Cohesion”: Germany Warns Against Ban On Energy Imports From Russia

At a time when US officials are saying virtually every day that the US is in “active discussions” to ban Russian oil imports, Germany’s economy minister said that while he regrets the country is still dependent on imports from Moscow, he warned against a comprehensive ban on energy imports from Russia.

As Dutesche Welle reports, “Germany is currently still dependent on Russian fossil fuels”, Economy Minister Robert Habeck said on Thursday; he spoke out against a ban on energy imports from Russia in the wake of Moscow’s invasion of Ukraine.

“I would not advocate an embargo on Russian imports of fossil fuels. I would even oppose it,” he said after meeting German business leaders. “We need these energy supplies to maintain the price stability and energy security in Germany,” Habeck added, warning that “a shortage in supply could threaten social cohesion in Germany.”

Habeck stressed Germany “must free ourselves” from imports of Russia’s gas, coal, and oil. In February, Germany stopped the controversial Nord Stream 2 natural gas pipeline. It has since joined other European nations in introducing a raft of sanctions against Russia over its invasion of Ukraine. Berlin even overturned its longstanding practice of blocking weapons exports to conflict zones.

Habeck, however, said Germany has already begun to feel the effects of those decisions.

“The impact of the sanctions and of the war on all sectors of the economy is so strong that we can fear a big impact,” Habeck said. The minister said any hopes that Europe’s largest economy would return to post-pandemic levels later this year were dashed.

…click on the above link to read the rest of the article…

Russia Warns Of “Brave New World” Of Higher Gas Prices After Germany Halts Nord Stream 2

February 22, 2022

Russia Warns Of “Brave New World” Of Higher Gas Prices After Germany Halts Nord Stream 2

Update (0900ET): Europe’s energy crisis deepened Tuesday as Germany halted the process of certifying the Nord Stream 2 natural gas pipeline. Putin’s right hand man, Dmitry Medvedev responded to German Chancellor Olaf Scholz’s comments about the certification of the controversial Russia-to-Germany natural gas pipeline that ‘can’t happen right now’ by tweeting:

German Chancellor Olaf Scholz has issued an order to halt the process of certifying the Nord Stream 2 gas pipeline. Well. Welcome to the brave new world where Europeans are very soon going to pay €2.000 for 1.000 cubic meters of natural gas!

Based on Medvedev’s tweet, translating MWh to cubic meters, it appears gas prices for Europe could be headed back to crisis levels not seen since late 2021.

Europe is heavily reliant on Russia for its gas needs, and to block the Nord Stream 2’s certification will only create havoc in European energy markets.

Europe’s ultra-low gas storage levels for this time of year will keep the market very tight even beyond the winter season.

* * *

At a moment the United States and Europe are busy mulling over what sanctions to impose on Moscow for Putin’s independence recognition for Ukraine’s separatist republics – on the one hand wanting Russia to feel the pain as a warning against moving further into Ukraine (beyond what the Kremlin is dubbing “peacekeeping” troops in Donetsk and Luhansk, which entered the republics overnight), and on the other wanting to avoid severe enough economic measures that would almost guarantee immediate escalation – Germany on Tuesday has announced it has halted the certification process for the Nord Stream 2 pipeline.

…click on the above link to read the rest of the article…

Nord Stream: The Geo-politics of Keeping Germany ‘Down’, Russia ‘Out’, and Instability in Ukraine

February 16, 2022

It seems reasonable to expect we will have this crisis with us – in its various forms – for at least the next two years, Alastair Crooke writes.

Macron in a remarkably frank interview with a French Journal put his finger on the main structural problems facing the EU: He lambasted the fact that the EU Council (and other EU states) had vetoed the earlier French-German proposal for a Russia-EU summit. The consequences to this omission, he said starkly, was that: ‘Others’ were talking to the Russians on the behalf of the EU. It’s not hard to surmise that he is implying that U.S. ‘interests’ (whether directly or via NATO ventriloquism) were the ones doing the talking. And that ‘Europe’ had lost its voice.

This is not simply a case of wounded amour propre by the French Jupiterian leader. It is rather, that some West European leaders (ie. the Carolingian Axis), belatedly have awoken to the realisation that the whole fake artifice of the ‘imminent Russian invasion’ of Ukraine is about corralling European states back into bloc (NATO) discipline. Macron – to give him his due – showed by his remarks at the Moscow press conference that he understood that silence at this crucial moment could define Europe for the next decades – leaving it bereft of the autonomy (let alone any modicum of sovereignty) that Macron so much wants for Europe.

The account of Macron’s press conference after his long tête-à-tête with Putin represents the contortionism of a French President unable to explicitly diss the dominant Anglo-American narrative on Ukraine, whilst saying – in barely coded language – that he was at one with Russia on all its complaints about the failed European security architecture, and the real risks of its toxicity for Russia that could lead to war in Europe.

Macron explicitly said that new security arrangements in Europe are absolutely needed. (In spite of his care not to poke the U.S. in the eye, he was clearly signalling a non-NATO ‘new’ arrangement). He also flatly contradicted the Washington narrative, saying that he did not believe Russia had an intent to invade Ukraine. Adding that in respect to NATO expansion, mistakes had been made.

…click on the above link to read the rest of the article…

Biden Presses Reluctant German Chancellor On Halting Nord Stream 2, Imposing Russia Sanctions

February 7, 2022

Biden Presses Reluctant German Chancellor On Halting Nord Stream 2, Imposing Russia Sanctions

Macron was in Moscow in talks with Putin, and German Chancellor Olaf Scholz was in Washington meeting with Biden on Monday. Despite Germany lately coming under heavy criticism from the more hawkish corners of the NATO alliance for its less than muscular response to the Ukraine crisis, Biden told reporters while welcoming Scholz that they are “in lockstep” on “confronting Russian aggression” at Ukraine’s border.

Going into the meeting, admin officials said the two leaders would spend time talking about a “robust sanctions package” aimed at Moscow in the event of a military offensive. However, Scholz has not indicated willingness to go along with any level of punitive economic measures, given also Germany’s close trade and energy ties with Russia, not the least of which still looms large in the background is Nord Stream 2.

On this matter, the White House indicated Biden is pressing the German Chancellor on putting in place plans to halt cooperation with Russia on Nord Stream 2 if Ukraine is invaded. But given the pipeline is now complete, and ready to start pumping gas while merely awaiting final German regulatory approval, it’s hard to see how amenable Berlin will in the end be to this option.

CNN described, “Looming over the meeting, however, is the question of Scholz’s resolve to confront Putin. Among the United States’ major European allies, Germany has appeared the most reluctant to commit to lethal aid, sending thousands of helmets instead of weapons and refusing to allow another NATO ally, Estonia, to send German-made howitzers to Ukraine.”

Germany remains among leading European countries which has refused to bolster its forces along NATO’s ‘eastern flank’ – and has gone so far as to ban its weapons from being shipped Ukrainian forces.

…click on the above link to read the rest of the article…

Germany reveals when it will run out of gas

January 19, 2022

Germany reveals when it will run out of gas

Natural gas storage facilities in Germany are half-empty, economy ministry says

Natural gas reserves in Germany, which has one of the highest underground gas storage capacities in Europe, have fallen to historically low levels compared with previous years.

“According to the consolidated register of gas storage facilities of the European association Gas Infrastructure Europe, Germany’s gas storage facilities are 50.6% full (as of January 11, 2022),” the German Ministry of Economy said in response to a deputy’s request as quoted by RIA. “This corresponds to a theoretical working gas availability of 17.7 days,” it added.

This comes as Russian energy giant Gazprom said on Monday it has not booked any capacity to pump gas to Europe through the Yamal pipeline next month. The Yamal-Europe pipeline, which usually delivers Russian gas west into Europe, continued to send it eastward from Germany to Poland for a 28th successive day on Monday, data from German network operator Gascade showed.

The route between Poland and Germany had been operating in reverse mode since December 21, putting upward pressure on European gas prices.

Economists are warning of energy price spikes deeper into the winter, saying that Europe is yet to find itself physically short of gas during the current gas year, which began in October.

Overall, European storage facilities were 49.33% full as of January 12, according to Gas Infrastructure Europe. If the current rate of withdrawal is sustained, Europe’s reserves could be fully depleted by the end of winter delivery, it said.

Germany Threatens To Halt Nord Stream 2 If Russia Attacks Ukraine

January 19, 2022

Germany Threatens To Halt Nord Stream 2 If Russia Attacks Ukraine

On Tuesday German Chancellor Olaf Scholz was asked directly in a press Q&A whether a Russian military offensive in Ukraine might lead to NATO military intervention on behalf of Kiev.

Scholz responded by underlining “serious” political and economic consequences, but appeared to rule out any assistance from Germany on the military front, saying there won’t be arms deliveries either. But importantly, he said that Berlin would mull halting the flow of natural gas from Russia.

“Germany may consider halting the Nord Stream 2 pipeline if Russia attacks Ukraine, Chancellor Olaf Scholz signaled on Tuesday, as pressure grew on his government to take a more hawkish stance on the Kremlin,” Reuters reports of the statements made after he met with NATO Secretary-General Jens Stoltenberg.

The ‘options on the table’ would include sanctioning the pipeline as well. Though amid already soaring energy prices in a frigid European winter, this ‘option’ would at the same time involve Germany shooting itself in the foot, if urgent supply needs can’t be met elsewhere.

“It is clear that there will be a high price to pay and that everything will have to be discussed should there be a military intervention in Ukraine,” Scholz said.

But the chancellor added: “We are not interested in long-term tensions, quite the contrary. But it is also important that everyone adheres to the principles that we have agreed on, and this means that Russia must adhere to the principles of the OSCE [the Organization for Security Co-Operation in Europe].”

He called for Russia to reduce its troop presence near Ukraine, while highlight that both Russia nad Germany desire to maintain “constructive and stable relations.”

…click on the above link to read the rest of the article…

Germany To Become Net Power Importer For The First Time Since 2002

January 15, 2022

Germany To Become Net Power Importer For The First Time Since 2002

Europe’s largest economy, Germany, is expected to become a net importer of electricity in 2023 for the first time since 2002 due to retiring coal plants and the nuclear phase-out, the International Energy Agency (IEA) said on Friday.

Germany plans to switch off all its remaining nuclear power generators by the end of 2022, while it will also retire a large portion of its coal-fired capacity fleet between 2022 and 2024.

Recently, the country has said it would aim to phase out coal by 2030 – eight years ahead of earlier plans. The coal exit for Germany could be more difficult than in other European economies, because the country plans to phase out nuclear power generation by the end of this year.

The new coalition’s agreement in Germany includes, for example, the accelerated phase-out of coal—if possible by 2030—and the faster expansion of renewable energy, the IEA said in its Electricity Market Report – January 2022 published today.

Germany’s remaining nuclear capacity, which provided about 12 percent of total generation in 2021, is due to be phased out by the end of 2022. At the same time, some coal capacity is due to be retired according to the approved coal phase-out plans. Coal capacity is set to decline from 35 GW at the end of 2020 to 30 GW in 2022 and less than 26 GW in 2024, the IEA noted.

The timing of Germany’s nuclear phase-out and accelerated coal phase-out coincides with the ongoing energy crisis in Europe, where natural gas and power prices have jumped to record amid insufficient supply of gas and uneven wind power generation in northwest Europe, including in Germany.

…click on the above link to read the rest of the article…

Germany closes half its remaining nuclear power plants

January 6, 2022

Germany closes half its remaining nuclear power plants

The shutdowns of three plants take place as Europe faces one of its worst-ever energy crises and as support for nuclear as a low carbon energy is, once again, on the rise.

The Grohnde nuclear power plant is one of three being shut down on Friday

Germany is to shut down three nuclear power plants on Friday, as part of the country’s phase-out of nuclear energy.

The closures take place as Europe faces one of its worst-ever energy crises and as nuclear power is, once again, gaining support as it produces significantly less carbon dioxide.

The plants in Brokdorf in the northern state of Schleswig-Holstein, Grohnde in Lower Saxony and Unit C at Gundremmingen in Bavaria in the south are being taken off the grid.

The decommissioning process will take two decades and cost €1.1 billion ($1.25 billion) per plant.

Germany: The end of nuclear power plants

Where does this leave nuclear in Germany?

This means that in 2022, Germany will have just three nuclear power plants — in the states of Bavaria, Baden-Württemberg and Lower Saxony.

They are due to cease production in exactly a year’s time, cutting nuclear energy output by around four gigawatts — equivalent to the power produced by 1,000 wind turbines.

However, two plants that produce fuel and fuel elements for export may continue to operate.

The closures will officially end the nuclear phase-out for domestic energy production started under former German Chancellor Angela Merkel.

Merkel’s government made the decision in 2011 after the accident at the Fukushima atomic power plant in Japan.

An earthquake and tsunami destroyed the coastal plant in the world’s worst nuclear disaster since Chernobyl 25 years earlier.

The Brokdorf plant is one of three nuclear power stations in Germany being shut down on New Year’s Eve

…click on the above link to read the rest of the article…

Germany “Imperils” Power Grid By Pulling Plug On 3 Nuclear Plants

January 3, 2022

Germany “Imperils” Power Grid By Pulling Plug On 3 Nuclear Plants

As nat gas prices surge in Europe, Germany is kicking off the new year by moving ahead with plans to shutter three of its six remaining nuclear power plants, making good on a commitment made in the aftermath of Japan’s disastrous meltdown at the Fukushima Daiichi plant.

The decision was championed especially vigorously by the Greens, who are now helping to rule as part of Germany’s new “stop sign” ruling coalition. But soaring natural gas prices across Europe mean this concession to the environmental lobby couldn’t come at a worse time.

Above: One of the shuttered plants, located in Gundremmingen. Source: Reuters

It’s a decision that could have consequences for the US. As we have complained before, the AOC-backed “Green New Deal” mostly excluded nuclear, by far the most efficient and useful alternative to fossil fuels, instead choosing to rely solely on inadequate “renewables”. And as Reuters adds in its report, Germany’s decision to pull the plug represent an “irreversible” pivot away from an energy source deemed “clean and cheap by some.”

Here’s more from Reuters:

Germany has pulled the plug on three of its last six nuclear power stations as it moves towards completing its withdrawal from nuclear power as it turns its focus to renewables.

The government decided to speed up the phasing out of nuclear power following Japan’s Fukushima reactor meltdown in 2011 when an earthquake and tsunami destroyed the coastal plant in the world’s worst nuclear disaster since Chernobyl in 1986.

The reactors of Brokdorf, Grohnde and Gundremmingen C, run by utilities E.ON and RWE shut down late on Friday after three and half decades in operation.

…click on the above link to read the rest of the article…

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