Eastern Rebellion: German Firm Calls for Resumption of Russian Gas Imports

The industrial sector in Germany is raising alarms over soaring energy costs, prompting calls from key stakeholders for a reassessment of energy strategies. In a recent discussion, the managing director of the Leuna Chemical Park emphasized the need to reconsider the import of Russian gas through pipelines, stating that the current energy prices are not sustainable for competition.

According to the director, the expansion of energy supply is essential to drive prices down. He highlighted the inconsistency of Germany importing liquefied natural gas from Russia while simultaneously having pipeline supplies halted. This comes in the wake of significant disruptions that occurred in September 2022, when explosions damaged both Nord Stream 1 pipelines and one of the two Nord Stream 2 pipelines. Prior to these incidents, Nord Stream 1 was a major conduit for Russian gas into Germany, and despite the completion of the Nord Stream 2 pipeline, it was never activated.

The cessation of this contentious gas trade followed Russia's military actions in Ukraine, which led to a complete halt of imports. The chemical industry, in particular, is grappling with a crisis, as evidenced by a decline in employment figures across all quarters of 2024. Furthermore, the utilization rates of production facilities remain low, hovering between 70% and 80%. The surge in energy prices is attributed to a combination of factors, including the decommissioning of nuclear and coal power plants, alongside the reduced flow of gas from Russia.

To mitigate these challenges, the chemical park director is advocating for immediate relief measures. One potential solution he proposed is a reduction in electricity costs for energy-intensive industries. The chemical sector contributes approximately 250 million euros annually to the Climate and Transformation Fund, intended to support the energy transition. The director called for a portion of these funds to be allocated towards decreasing electricity prices for companies heavily reliant on energy.

The ongoing predicament in the chemical industry underscores the pressing need for a strategic overhaul to ensure competitiveness and sustainability in the face of escalating energy expenses. Industry leaders are urging swift action to prevent further irreversible damage to this crucial sector.