Germany is fed up with American “exploitation”, due to gas sales at excessive prices. Alarm signal for Western unity vis-à-vis Russia

By Constantin Radut
The energy crisis that covers the economies of Western Europe from one day to the next is beginning to be unbearable. Without Russian gas, Germany, Eastern Europe, and France are expecting an imminent recession of their economies. And the US, which insisted on a total embargo on energy products from Russia, is starting to be pointed at.
This is what the German Minister of Economy, Robert Habeck, does in an interview given to the regional newspaper Neue Osnabruecker Zeitung.
On Wednesday, he reproached several countries, primarily the US, for selling at very high prices the gases that replace those from Russia, reports AFP.
“Certain countries, even friends, often get astronomical prices,” the official said in an interview with the regional newspaper Neue Osnabruecker Zeitung. “This creates a problem”, he appreciated, adding that he asked the European Commission to “discuss” with the respective states.
After invading Ukraine and being sanctioned by the West, Russia first significantly reduced gas supplies to Germany, and in early September stopped them. Before the conflict, Russian gas accounted for 55% of imports.
Therefore, Berlin had to diversify its suppliers and considerably increased the volume of purchases of liquefied natural gas (LNG), much more expensive. Other European countries did the same, turning in particular to the United States, and the share of American LNG in the respective European imports increased from 28% last year to 45% today.
Habeck therefore referred primarily to American suppliers, recalling that “the United States appealed to us when oil prices exploded” and appreciating that “such solidarity would also be useful for amortizing gas prices”.
In the spring, when oil prices were rising, the United States called on the national strategic reserve to reduce pressure on the markets, and its allies in the International Energy Agency supported this effort, says AFP.
Without Russian gas, the German economy finds it increasingly difficult. In the balance of daily energy consumption, coal took first place. When the wind is not blowing and the wind turbines are not moving, coal reaches over 40% of the national consumption.
The economy begins to be affected more and more. This is felt especially in exports, which are reduced from one month to one lata. However, exports have been the engine of the German economy for over 50 years.
For decades, large export surpluses have been an important part of the German business model – and therefore an important factor in Germany’s prosperity, writes the portal businessinsider.de. However, the upheavals resulting from the war in Ukraine are weakening Germany’s position on world markets. In August, the export surplus fell to almost zero – the lowest level since reunification.
It is true that German exports increased in August: compared to July, they increased by 1.6 percent; compared to August 2021 even by 18.1 percent. The Federal Statistics Office announced these preliminary figures on Wednesday. In total, German companies shipped goods worth 133.1 billion euros abroad in August.
But imports have grown even more – in terms of value. They increased by 33.3 percent, up to 131.9 billion euros compared to the previous year. This is largely due to higher energy prices. The effect is reinforced by the strong US dollar and weak euro. Because most imports and most energy imports are settled in dollars.
Germany’s foreign trade surplus was just 1.2 billion euros in August. In July it was still 3.4 billion euros, in August 2021 there was even a surplus of 13.7 billion euros. The foreign trade balance thus fell to its lowest level since reunification. At the time, pent-up demand from East Germany caused imports to skyrocket and even led to a negative trade balance for Germany.
In May of this year, the Federal Statistical Office even reported a negative trade balance in its first estimate. However, the final figures showed a clear surplus.
The current deterioration in Germany’s foreign trade position is due less to lower exports. German companies continue to be very successful in their foreign markets. Despite all the global crises, German exports grew by 14.3% in the first eight months of the year. However, global supply chain issues, war and a weak economy are also clouding the German economy’s export outlook. According to a survey carried out by the Ifo Institute, they fell in September to the lowest value since May 2020.
The reason the German trade surplus has almost evaporated is due to import prices. Rising prices are costing Germans considerable prosperity. The ratio between the prices of goods that German companies export and the prices of those goods that Germany mainly imports has deteriorated. For the money coming into Germany through exports, Germans can buy less from abroad. This reduces the real value of GDP – and with it prosperity.