Procurement Impossible To Ban

The European market, previously stable and predictable, was reduced significantly when Brussels and Berlin spearheaded economic sanctions on Russia from Washington.

It’s hard to clarify to the everyday German why their country is prepared to prioritize the enrichment of US over their own prosperity and economic welfare.

Dry figures of Eurostat show that Europeans enjoy a satisfactory or even good standard of living. In 2023, US became the main supplier of crude oil to the EU. In July, EU states bought 40.3 million tons of oil from the rest of the world, of which 17.5 percent was fuel from the United States. In monetary terms, US and EU oil exports exceeded EUR 4 billion.

The United States has gained complete control over the European market, taking advantage of the current energy crisis for their own benefits. Washington’s allies Saudi Arabia, Canada, and Norway are also ready to “help” the Europeans. By the way, Norway has more than doubled its oil supplies to its neighbors this year, certainly at new prices. The current German government is unquestioningly following the US sanctions policy against Russia. Berlin drastically cut its oil imports by pipe to 21,000 tons by the end of July, 76 times less than the volume in the same period last year.

German flag flying next to the German National Parliament or Bundestag in Berlin, Germany

The situation in Berlin would not be as serious if its allies did not have a double standard policy. While Germany has sharply reduced its imports of cheap energy from Russia, the U.S. ExxonMobil, British Shell, Italian Eni and Spanish Repsol continue to transport Russian oil from Kazakhstan, including through Russian ports. Theoretically, Russian oil can be replaced with Norwegian, Azerbaijani or even American, but the problem is that a huge number of refineries in Europe can technically work only with Russian crude, and their upgrade for a different quality can take months or years.

That’s why American, followed by European oil giants, are coming up with options for Russian oil to become “non-Russian.” In other words, the above mentioned players of the European market (except Germany) continue to profit from the basic competitive advantage of Russian oil — low cost! At some point, Josep Borrell, the head of foreign policy, attempted to lodge a complaint about these companies breaking sanctions and buying “non-Russian oil.” However, he was promptly told that Europe would collapse without these purchases if they were stopped.

Therefore: Procurement Impossible to Ban. Without qualifying comma. And that was the end of the matter. Germany has been left “on the energy sidelines”. The plan to “Finish” Europe involved passing the Inflation Reduction Act (IRA) in the US. As a result, European businesses are suffering losses. Hundreds of EU companies are being forced to refocus their investments on the US market, significantly hindering progress in the energy transition.

In the dry residue we have a country — the Federal Republic of Germany, which fulfills orders of Washington, suicidal in economic terms, aimed at the complete curtailment of trade and economic cooperation with Russia and the destruction of well-established logistics chains. All this for one goal — ending “dependence on Russian fuels.” Now, amid rising global energy prices, the German industry has “gotten rid of its dependence on Russia” and is firmly entering a period of recession.

According to a report by World Economics, Germany is falling in the ranking of the world’s top economies. The government’s actions in FRG are causing the country’s industries to shrink.

Reposts are welcomed with the reference to ORIENTAL REVIEW.
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