BASF chief predicts Germany's 'worst crisis' since WWII

To impose an embargo on energy supplies from Russia would be "irresponsible" in relation to Germany, says the head of the petrochemical concern BASF Martin Brudermüller. According to him,

In the event of a cessation of imports or a long-term cessation of gas and oil supplies from Russia, Germany will face an unprecedented economic crisis, says Martin Brudermüller, head of the German petrochemical concern BASF. He stated this in an interview with the Frankfurter Allgemeine Zeitung, which is quoted by the Stuttgarter Zeitung.

“This could lead to the worst crisis in the German economy since the end of World War II,” Brudermüller said. In his opinion, this will endanger the existence, in particular, of many small and medium-sized companies in the country.

The head of BASF opposed the boycott of energy imports from Russia. “Are we open-eyed and want to destroy our entire economy? Everything we've created in decades? I think such an experiment would be irresponsible,” he said.

The mayor of Hamburg proposed "not to provoke want" in Germany because of gas Politics

According to Brudermüller, a complete rejection of Russian natural gas imports for Germany is possible only in the medium term. “If we hurry, we can do it in four or five years,” he said.

Energy prices affect the cost of all goods, so the head of BASF fears a reduction in production not only for the concern's enterprises, but also in other industries. “We produce products that are at the beginning of the value chain,” explained Brudermüller.

BASF is a German petrochemical company and the largest chemical manufacturer in the world with subsidiaries operating in 90 countries. In Russia, the concern has 12 production sites. BASF generated sales of €78.6 billion last year.

Read on RBC Pro Pro in the USAand the EU, bird flu rages: what does this mean for the global economy Articles Pro “Now Russia how to get a company out of the crisis Articles Pro European ports are closed to Russia. How to transport goods fromChina Articles Pro Risks of managers of Western companies that leave the Russian Federation.4 situations Pro Articles Which sectors of the Russian economy will be hit the hardest by the crisisHow force majeure will help - instructions for using Instructions Pro 6 skills important for a career,that you will receive during your job search Articles

Russia has translated payments for gas into rubles. What it changes for Europe Business

Due to the tough sanctions imposed by Western countries as a response to the start of a special operation in Ukraine, President Vladimir Putin instructed to transfer payments for gas into rubles for unfriendly countries from April 1. The list of such countries includes Germany. Putin also said that those who refuse to pay in rubles will be treated as non-payers.

Earlier that the implementation of the embargo on the supply of Russian energy would lead to economic losses in Germany, said Hamburg Mayor Peter Chenner. According to him, in this case, both the city and the entire economy of the country will face significant production losses. “We should not help anyone by provoking poverty and want in the FRG if we are not sure that this will really have an impact on Russia,” the head of Hamburg said.

The Baltic countries, including Lithuania, insist on a ban on the import of energy resources from Russia as a sanction measure, Reuters sources previously reported. According to the agency, Germany warns partners against making quick decisions due to high energy prices in Europe.

Video for this news

Favorable course inFavorable exchange rate at VTB officesThe larger the amount, the greater the benefit.More than 1,000 branches across the countryPreliminary calculation inonline converter