Germany Tightening Belts To Shed Off Russian Energy Imports

21 March 2022

Russia-Ukraine war is pulling in many countries together to support Ukraine in defending itself and stop Russia in its invasion of Ukraine. The Western nations, mainly the US, UK, and EU have also put sanctions on Russia, while other countries are joining in to despise Russia.

Among the European Union and its member states, Germany is the high potential import market for Russia, which account for a significant contribution of Russia’s oil and coal. Recently, the announcement of Germany might shake things up for Russia as Germany will ban the imports.

Germany Energy Imports From Russia

Germany accounts for the largest share of Russia’s export in major energy commodities. It’s not only that Russia is an important export market for Germany, but Germany is also an important import market for Russia. Losing any significant share will be troublesome for both countries.

Although Germany claims that it is not barring all the imports from Russia into the country, Russia could lose a big chunk of the market from the EU. Represented below are the top exporting countries for Russia, as per the Russia trade database for the ending year 2021.

Germany imports one-third of crude oil from Russia, while Germany’s coal imports from Russia accounts for nearly about 45% or more. Crude oil and coal imports account for the highest energy imports from Russia in Germany, among which oil has significantly high values.

In the shown global trade data below, the value of imports for crude oil is higher than the coal. Highlighted observations include that both of the commodities imports in Germany are rising with the introduction of COVID-19 repercussions, mainly from the second quarter of 2020.

Germany And Russia Energy Market

Russia accounts for the largest oil reserves and the production of fossil fuels such as crude oil, natural gas and coal. Russia's exports of oil account for nearly 10% and more, with a significant contribution to global natural gas of near about 24% or more and 16% or more for the global coal.

Germany imports the highest amount of energy imports from Russia, but with the introduction of Russia-Ukraine tensions and commitment to supporting Ukraine in the war, Germany is now making amendments in how it manages the energy distribution and also how can it become self-reliant for energy generation.

Shown below are the alternative markets for Germany to find shelter in if things fall out of hand while implementing the self-reliance efforts. Countries listed below can also take advantage of the requirements made by Germany in these tough times to come forward and increase their revenue. The listed countries and values are only limited to coal and oil imports in Germany.

The idea for Germany to find self-reliance begins with the implementation of the idea for electricity that can be generated from clean energy sources such as solar panels, windmills, and similar systems. EU’s Green Hydrogen Target of 2030 is prevalent for years and will provide Germany with assistance to generate energy for the EU’s biggest economy.