Deutsche Bank: Sanctions on Russia will create serious gas supply issues
The head of the bank urges the "constant re-evaluation" of applying tougher sanctions on Russia.
The Head of the German Deutsche Bank, Christian Sewing, warned against abandoning the Nord Stream 1 gas pipeline, stressing not imposing new sanctions against Russia.
"First, we must let the announced sanctions take effect. However, these sanctions also have a negative effect on us, and we must endure it," Sewing told Welt am Sonntag.
Shutting down Nord Stream 1 would not cease Moscow's supply of gas to Germany, but rather create serious energy supply issues, significantly increasing prices in Germany.
Read more: Germany in a quagmire over Russian energy
Furthermore, Sewing urged to "constantly re-evaluate" the need for tougher sanctions on Russia, given the repercussions which Europe is bound to face due to them.
In response to Russia's military operation launched on Ukraine on February 24, Washington and western allies imposed draconian sanctions on Moscow, including on the Russian central bank, oil exports, in addition to closing airspace to Russian flights.
Mass poverty in Germany if Russian gas and oil boycotted
German Economy and Energy Minister Robert Habeck warned on Sunday, in an interview with public broadcaster ARD that Germany's people may face mass unemployment and poverty if there was to be an immediate boycott of Russian gas and oil.
"If we flip a switch immediately," people will witness supply shortages, he said, adding that people will run out of gas for transportation.
55% of Germany's natural gas, 52% of its coal, and 34% of its minerals come from Russia, which explains why the country is so highly dependent on Moscow's exports.
Habeck said his government is working to ensure it would be able to give up Russian coal by the summer and to phase out Russian oil by the end of the year.
“With coal, oil and even gas we are step by step in the process of making ourselves independent”, the former Green party co-leader said. “But we can’t do it in an instant. That’s bitter, and it’s not a nice thing morally to confess to, but we can’t do it yet.”