Business

Europeans weigh costs of cutting Russian energy over Ukraine

MILAN


Rising energy prices across Europe are testing the resolve and determination of ordinary consumers as well as business owners. They are caught between Europe’s dependence upon cheap Russian energy and their disgust at President Vladimir Putin’s invasion in Ukraine.


Because their regular payments to Russia are funding a war that has resulted in many civilian deaths and massive destruction, governments are trying to find a way to replace the energy supplies. They are also facing a nerve-wracking confrontation with Moscow over its demands to pay in rubles. Russia could block supplies as it did last week to Bulgaria and Poland.


EU countries import 40% and 25% respectively of oil and gas from Russia. The current EU timeline doesn’t allow for energy independence from Moscow in the next five years. As atrocities are revealed, the EU is trying to tighten sanctions.


Wednesday’s proposal by the EU executive commission was to phase out crude oil imports within six months, and refine products by 2022. The proposal must be approved by all 27 members countries. Some are more dependent than others on Russian oil. Oil is still more affordable than natural gas, which is used for electricity generation and power industries.


According to a survey of 1,230 random voters, 28% voted in the poll published by ZDF, a German public broadcaster. saidThe country should immediately stop oil and natural gas imports, even if this causes supply problems. 54% saidIt should be done only if there is sufficient supply. 14% oppose a ban.


It shows how the economic burden is falling on consumers and businesses. Last summer saw natural gas prices soar. Here are some of their stories


——


MILAN HELP FOR POOR –


Two times a week, struggling residents from one of Milan’s poorest neighborhoods in the periphery of Italy line up to request help. They are increasingly clutching their utility bills.


A panel of three women from Santa Lucia parish in Quarto Olggiaro decided to offer help to the needy after energy prices started to rise. The energy packet was funded by A2A, which offers up to 300 euro per year to families that can’t afford their higher utility bills. Since September, around 100 families have been eligible.


Alessandra Travaglini (54), hit the maximum before the war when her utility bill jumped to more than 120 euros. Since then, she has been working as an in-home caregiver and is now out of work. She hopes that the parish will be able to provide her with more assistance.


There isn’t much space for reducing energy use.


“I don’t cook a lot. I only use the washing machine in the evenings or on weekends. I take only short showers, use the oven once a month, iron once a week,” Travaglini said. “I am afraid. `’


She is worried that if Italy cuts off Russian energy, or if Moscow suspends supplies, it will make her life even more difficult.


She said, “I think they need to buy it in Russia, for the moment.” said. “But to me, Italy has chosen the wrong strategy because we have become adversaries. “If Mr. Putin presses the button, I believe we will be first targets” in any nuke attack.


Roberto Bertolini, who works just three hours a week caring for disabled adults, can’t pay his bimonthly electricity bill. It was 180 euro.


Bertolini feels the war is especially close to his heart. He plans to move in with his wife, 66, to Hungary when he retires. He believes that Italy shouldn’t be purchasing gas from Russia.


He said, “These sacrifices must be made.” said. “I change the channel when I see these images. It’s too terrible — children are attacked, women are raped. These are difficult images. It’s wrong to not show them. However, for me, I can’t even look.”


——


BUDAPEST BELT-TIGHTENING


Kritztian Kobela­Piko is a plumber and gas fitter in Budapest, Hungary. He sees his work as closely connected to Russia’s energy relations. The war in Ukraine is not far away, and the capital is only a few hundred kilometres (miles).


Independent contractor, aged 41, installs gas boilers using materials that are exponentially more costly. He saidHe sympathizes deeply with the victims of war, and would willingly make sacrifices for Ukrainians’ safety.


Kobela-Piko: “At best, I will need to tighten my belt slightly.” said. These sacrifices are insignificant compared to the reality of Ukraine’s people. I believe this is the minimum sacrifice, and something I would make out of solidarity.


Many customers have been using electricity to heat their homes since the start of World War II. They are uncertain what the future holds for natural gas.


Kobela-Piko is a firm believer in harsher sanctions against Moscow, but he disagrees. saidDue to its geopolitical circumstances, Hungary cannot cut off its dependence upon Russian energy. Hungary, a former member the Soviet bloc’s Soviet bloc, imports more than 60% of its oil and 85% of its gas from Russia.


He stated that placing pressure on Hungary to get its energy resources is “very unpleasant”. said.


——


RUSSIAN GAS – GERMAN GLASS


Carletta Heinz calculates the effects of a gas cutoff on the 400-year-old glass business she takes over from her father, as well as for communities located in the heartland of a glassmaking area in eastern Germany.


Heinz-Glas Group is a manufacturer of bottles for international perfume and cosmetic brands. They would need to shut down a gas-fired plant in Piesau. It would cause damage to tanks that must maintain temperatures above 900 degrees Celsius (1.650 degrees Fahrenheit), in order to prevent molten glasses from solidifying. Piesau can’t restart if Piesau is shut down.


To reduce carbon emissions, the company has already switched to electricity at its headquarters in Kleintettau. However, it still requires gas for certain processes.


Heinz can help you if there is a government-imposed gas rationing because of a gas boycott saidGermany must make sure that glassmakers have at least 70% of the energy they use to heat their tanks and prevent widespread equipment loss. EU law requires that governments cut off gas supply to businesses in case of emergency. This will protect hospitals and homes as well as the environment.


Her concern about glass-making firms near the border between Thuringia, Bavaria, and Bavaria regions is not limited to her company. They employ 5,000 people directly, and 8,000 indirectly.


If production moves to countries that have less environmental protections, job losses could lead to higher carbon emissions. said Heinz, 38.


“Germany is more environmentally conscious than other countries.” Glass will still be used and would be made in other nations, which would be even worse for our planet,” she stated. said.


“I believe that alternatives are better than no options. Heinz stated that he supports everything that harms Russia and assists Ukraine. “But we must remember our industry and make sure we have a chance to succeed. If our industry is destroyed, then no one else can help us.”


——


BULGARIA: SANCTIONS BLOWBACK


Nikolay Belev is not making the same income as those working in construction in Sofia, Bulgaria. He doesn’t want to be forced to accept more Russian sanctions. These sanctions are not right and will only cause more injustice in the EU’s poorest member states.


Belev stated that the sanctions were intended to weaken Russia’s economic, but they ultimately hit my country and a lot more people with lower incomes. said. He also claimed that rising energy prices had increased the cost of his materials by as much as 30% over the last two-months.


Bulgaria, a nation with 6.5 million citizens, was once a close ally of Moscow during the Soviet era. It is now a NATO member and an EU member but it remains heavily dependent upon Russian energy. Russia’s Lukoil is the country’s only oil refinery, and supplies almost two-thirds its energy needs.


The sole nuclear power plant in Bulgaria, which generates over a third the country’s electricity, is run on uranium from Russia.


The current coalition government of centrists is looking for alternative energy sources to help them get on a more pro-Western course. This includes gas from Azerbaijan and liquefied natural gases via a pipeline with Greece. Higher prices will be associated with the LNG option.


Veselina Marinova (an editor) lives with her husband, 83-year old mother. For her, paying more energy is a small price when compared to the deaths of civilians in Ukraine.


She stated, “Nothing can justify the military aggression against democratic countries.” said. “Ofcourse, my family will be affected by the inflation caused by war. I know there will be a severe crisis soon and my life will become harder. However, I believe that we must keep on the right path.


——


Toshkov reported from Sofia in Bulgaria, Spike from Budapest in Hungary


Get in touch


Are you having questions about the attack on Ukraine Email [email protected].


  • If you would like to speak with a journalist at CTV News, please include your name, address, and contact information.

  • Your comments might be used in an article on CTVNews.ca

SourceCTV

Leave a Reply

Your email address will not be published.