Scholz
© Tobias Schwarz/AFP via Getty ImagesScholz gives a speech during a session of the Bundestag
An immediate ban on Russian energy imports would trigger an economic recession in Germany and across Europe, German Chancellor Olaf Scholz warned Wednesday.

Speaking to the Bundestag, Scholz said Germany would end its energy dependence on Russia in due course but cutting all ties now would hit the German economy when it was unprepared.

"We will end this dependence [on Russian oil, coal and gas] as quickly as we can, but to do that from one day to the next would mean plunging our country and all of Europe into a recession," the chancellor said, warning that "hundreds of thousands of jobs would be at risk, entire industries would be on the brink."


Comment: Isn't it curious that until recently Germany saw Russia as trustworthy enough to bet much of its entire economy on, and with a view to deepening ties even further with Nord Stream II, and now, suddenly, Russia is the enemy. However not so much of an enemy that they'll stop receiving its gas and oil.


"The truth is that the sanctions that have already been decided also hit many citizens hard, and not just at the gas pump," Scholz continued, arguing that sanctions "must not hit the European countries harder than the Russian leadership."


Comment: The sanctions have backfired. And in turn have revealed to a great many more just how fragile the economies in the West are: Putin flips sanctions, demands rubles for Russian gas from 'hostile' countries, says credibility of dollar and euro is 'destroyed'


Scholz's remarks represented a blunt rejection of calls from some EU countries, particularly in Eastern Europe, for a swift ban on Russian energy imports in response to Moscow's war in Ukraine.


Comment: Although not all countries in Eastern Europe, because Serbia and Hungary only very recently agreed on 'incredible' gas deals with Russia.


His comments came as Germany's influential economic research institute Ifo cut this year's growth forecast for the national economy and raised inflation expectations, citing the effects of the war and sanctions.

As rising prices have already started hitting businesses and consumers, the chancellor announced further measures by Finance Minister Christian Lindner to alleviate the additional cost "in the coming weeks."


Comment: And protests are already starting to erupt across Europe: Protests and blockades in France, Spain, Albania, over soaring price of fuel & cost of living


But Scholz said the process of moving away from Russian energy dependence has already started.

"In the short term, we are securing additional sources of gas, oil and coal ... We are diversifying our supply sources, already in the coming months. In doing so, we're building on the existing liquid natural gas terminals on the European west coast, and we will build our own LNG terminals much faster than we have until now," he said.


Comment: LNG is more expensive, less reliable, and these terminals will take time and cost billions to build. This also just proves how green energy efforts have failed and how foolish it was to decommission nuclear power stations when they knew they had no alternatives.


Responding to Ukraine's calls for a no-fly zone over the country, Scholz reiterated his conviction that such a step should not be taken as it would represent a provocation toward Moscow that could trigger a new world war.

"NATO will not be a party to war ... this is an imperative of common sense, anything else would be irresponsible," he said.