Russia is making money from oil and gas exports, but it has nowhere to spend it

German Vice-Chancellor and Economy Robert Habeck said the country was “ashamed” that it had not been able to significantly reduce its dependence on Russian gas.

  • Germany continues to depend on Russian imports of natural gas.
  • German Vice Chancellor Habeck said the country was “ashamed” to still buy gas from Russia.
  • But, he said, the sanctions prevent Putin from spending proceeds from oil and gas sales.
  • For more stories, visit Business Insider.

Russia may still be profiting from its oil and gas sales, but Moscow can ‘hardly spend’ money due to sweeping sanctions, German Vice Chancellor Robert Habeck says, as reported Deutsche Welle.

“The income that Putin has obtained in recent months due to high prices hurts, and we can only be ashamed that we have not yet managed to reduce this dependency more significantly,” said Habeck, who is also a minister. German Economics, by DW.

“Putin still receives money, but he can hardly spend it anymore,” he added.

Germany condemned Russia’s invasion of Ukraine and joined in the sanctions. But Europe’s biggest economy continues to depend on Russian natural gas, prompting criticism that it is funding President Vladimir Putin’s regime and his war in Ukraine. Germany gets around 35% of its natural gas supply from Russia and could fall into a deep recession if fuel were to be cut, said a top banker in April.

According to a report from Center for Research on Energy and Clean Air (CREA) published on April 27.

Habeck told lawmakers in Berlin that Germany needed to do more to reduce its dependence on Russian natural gas, but added that the sanctions were already taking their toll on the Russian economy and that Putin ‘can’t go on any longer. “, according Bloomberg. For example, Russia has lost access to security updates for planes, which means they could soon be grounded.

“Time doesn’t work for Russia. It works against Russia, it works against the Russian economy,” Habeck said, per DW.

Germany to wean off Russian gas by mid-2024 Habeck said in a March 25 press release.

“While acting decisively, we are considering our options cautiously. Even if we become more independent of Russian imports, it is still too early for an energy embargo,” he said. “The economic and social consequences would still be too serious. But every supply contract that is terminated hurts Putin.”

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