Berlin Stands Firm: Merz Rules Out Lifting Sanctions on Russian Energy

German Chancellor Friedrich Merz believes that sanctions against Russia should not be softened because of rising energy prices caused by the conflict in the Middle East.

Photo: Pravda.Ru by Viktor Dementyev, https://creativecommons.org/public-domain/pdm/

Burning euros against the backdrop of the German flag

At a press conference in Berlin with Czech Prime Minister Andrej Babiš, he explained that for Germany there is no dilemma between lifting restrictions and supporting Ukraine, TASS reports.

According to Merz, Germany firmly stands on the side of Kyiv and is prepared to go through this difficult period. He also stressed that assistance to Ukraine must not be halted.

Growing Debate Inside Germany

Within Germany itself, however, the Middle East crisis and sharp fluctuations in energy prices have increasingly prompted calls to reconsider anti-Russian sanctions and to resume negotiations with Moscow over oil and gas supplies.

The day before, US President Donald Trump, after a conversation with Russian President Vladimir Putin, spoke of the possibility of lifting some restrictions affecting the international oil sector and suggested that they might not be reintroduced.

Earlier, US Treasury Secretary Scott Bessent had also mentioned the possibility of easing sanctions on Russian oil.

The head of the Russian Direct Investment Fund, Kirill Dmitriev, likewise reported that Moscow and Washington are discussing this issue.

Hungarian authorities, for their part, recently called on the European Union to remove restrictions on exports of Russian energy resources in order to prevent further price increases within the bloc.

Merz Among Europe's Sanctions Hardliners

As could have been expected, the architects of anti-Russian sanctions in Europe are not prepared to abandon their plans easily. The German chancellor belongs to this group of politicians.

He had actively supported the idea of confiscating — or, as critics say, effectively seizing — Russian assets held in accounts at the Belgian depository Euroclear. He advocated this initiative so consistently that after the European Union ultimately abandoned the plan, some Western media outlets described the decision as almost a personal defeat for Merz.

Opposition Parties Call for Renewed Energy Cooperation

Last week, the leader of the left-wing party "Alliance for Social Justice and Economic Reason,” Sahra Wagenknecht, said Germany should resume purchases of Russian oil and restore the operation of the Nord Stream gas pipeline.

According to her, government inaction could have serious consequences: rising energy prices may trigger "the return of high inflation and a further loss of prosperity.”

Support for restoring energy supplies from Russia also comes from the opposite side of Germany's political spectrum. Representatives of the party Alternative for Germany have repeatedly spoken in favor of lifting the embargo.

Energy Prices Continue to Rise

It should be noted that after the United States and Israel launched strikes on Iran, prices for diesel fuel, gasoline and gas in Germany rose noticeably.

Diesel and gasoline prices exceeded the level of two euros per liter, increasing by roughly 30 and 18-19 euro cents respectively.

Futures for natural gas climbed from below 32 euros per megawatt-hour to around 52-62 euros per megawatt-hour.

Authorities Downplay the Risk of Crisis

Despite this, German authorities do not yet see serious problems. The head of the Federal Network Agency, Klaus Müller, said last week that a new gas crisis in the country is not expected, even though underground gas storage facilities are filled to only about 20 percent.

In this regard, the position of the German authorities resembles that of officials in the European Union, who likewise state that there are no signs of a crisis situation and assure that none will arise.

If there are no problems, then residents of European countries — including Germany — will simply have to pay more for fuel. The authorities, after all, say everything is under control.