Poland eyes ending Russian oil imports, Germany warns on gas

• 

Poland announced, on Wednesday, that it will end all Russian oil imports by the end of the year, while Germany issued a warning about natural gas levels and urged people to conserve, both of which are new signs of how the West’s sanctions on Russia have heightened concerns about securing energy supplies to power Europe.

The EU's 27-nation bloc has refused to sanction energy because it relies on Moscow for fuel for cars, electricity, heating, and industry, but it has announced plans to wean itself off those supplies.

Polish Prime Minister Mateusz Morawiecki told reporters, “We are presenting the most radical plan in Europe for departing from Russian oil by the end of this year.”

Morawiecki’s remarks came a day after Poland announced a ban on Russian coal imports, which is set to take effect in May. 

The polish PM added that Poland will take steps to become "independent" of Russian supplies and urges the rest of the European Union to do the same. 

While some in Europe are calling for an immediate boycott of all Russian oil and natural gas, the EU intends to cut Russian gas imports by two-thirds by the end of the year and eliminate them entirely by 2030. Meanwhile, jittery energy markets have pushed up already high oil and natural gas prices for Europeans and others around the world.

As a long-term solution, the EU is investing in renewable energy, but it is also scrambling to shore up alternative sources of fossil fuels, including a new agreement with the United States to receive more liquefied natural gas, or LNG, that arrives by ship.

Poland is expanding an LNG terminal to receive cargoes from Qatar, the US, Norway, and other exporters. A new Baltic pipeline carrying Norwegian gas is expected to open by the end of the year. It has also reduced its reliance on Russian oil through contracts with Saudi Arabia, the United States, and Norway, and is considering imports from Kazakhstan.

Germany, the EU's largest economy and one of the most reliant on Russian natural gas, has signed agreements with several LNG suppliers to ship LNG to neighboring European countries and then pump it in. Officials say they hope to phase out Russian oil and coal this year, and natural gas by the middle of 2024.

It is worth mentioning that Germany has issued an early warning about gas supplies on Wednesday, urging businesses and households to conserve, as Russia says that payment for gas deliveries should be made in rubles.

“There have been several comments from the Russian side that if this (payments in rubles) doesn’t happen, then the supplies will be stopped,” Economy Minister Robert Habeck said.

According to Kremlin Spokesperson Dmitry Peskov, switching payments for Russian gas to rubles will be a "drawn-out process". He pointed out that there is always a lag between gas supplies and payments, and that the government will soon release details of the new plan.

Habeck said those rules were expected Thursday.

Furthermore, he described the early warning as precautionary, given that Russia was still fulfilling its contracts. The first of three levels entails forming a crisis team to increase monitoring of the gas supply, according to Habeck, who is also the energy minister and vice-chancellor.

Germany's gas storage facilities are about 25% full.

“The question of how long the gas will last basically depends on several factors (such as) consumption and weather,” he said. “If there’s a lot of heating, then the storage facilities will be emptied.”

He added that Germany is prepared for a sudden interruption in Russian gas supplies but warned of "significant consequences" and urged consumers to help prevent a shortage by reducing their use.

“We are in a situation where I have to say this clearly, every kilowatt-hour of energy saved helps,” Habeck said.

The second warning level would compel companies in the gas industry to take the necessary supply-control measures. The third entails full state intervention to ensure that those in greatest need of gas, such as hospitals and private households, receive it, according to Habeck.

“We’re not there and we don’t want to go there,” he added.