FX.co ★ Germany’s Russian oil ban can sink German economy

Germany is set to phase out Russian energy imports by the end of 2022 in response to the conflict in Ukraine. However, this move could have serious repercussions for the German economy. According to local media, a major oil refinery in the town of Schwedt in Eastern Germany, which runs solely on Russian pipeline oil, could be put out of action by the embargo. Amid soaring energy prices, a shutdown of the Schwedt refinery could have a severe impact on fuel supplies in the country.

Nevertheless, the government of Germany is determined to end the country’s reliance on Russian energy imports. German Foreign Minister Annalena Baerbock stated that Berlin would not end sanctions against Russia behind Ukraine’s back.