Who is most harmed by the oil embargo?

The oil embargo and the oil price cap have been in force since Monday. The aim is to use these measures to make it more difficult for Russia to finance the Ukraine war. We asked the Handelsblatt readers how sensible they think these sanctions are.

There is a lot of skepticism in the letters. Some fear that the sanctions will affect “the German economy and German consumers the most”. Because they would have to accept the higher prices of the other suppliers or finance relief payments from the state through taxes. In addition, a reader writes: “The Russians are sitting on so many raw materials that our industry needs that they simply have the staying power.”

Another reader suspects that the oil embargo is turning into a “journey to Rome game where you forgot to put a chair away”. So he believes that the buying flows of oil will simply be distributed differently. In the worst case, another reader fears, “we will then get redeclared Russian oil by tanker”.

There is also skepticism about the oil price cap: “Either the cap is so high that you can omit it and ‘book’ it under political activism,” writes one reader. Or it turns out to be too low, leading to shortages and price increases.

Instead of an oil embargo or oil price cap, another reader sees the solution in a consistent and comprehensive strategy towards renewable energies: “That would be the solution that would make us independent of oil, coal and gas and thus also damage Putin in the long term.”

We have put together a selection for you from the letters from the Handelsblatt readers.

A show to keep the audience interested

“Oil embargo? A show to keep the audience interested!

The USA showed the way: soybean embargo for exports to China. What happened? China buys soy from Brazil (which previously sold soy to Europe), Europe is hailing itself as the savior for US farmers by now buying US soy instead of Brazilian soy. In the end, as much happened as in a trip to Rome game where you forgot to put away a chair.

It will be the same with oil. But the countries have different names…”
Wolfgang Emmerich

Either the lid is too high or too low

“Either the cap is so high that you can leave it out and ‘deduct’ it under political activism…

… or it is too low, and it fares like all other price caps in economic ‘cap history’: There is a shortage that is harmful for everyone, and the price increases are made up for when the market intervention can no longer be maintained.”
Gregory Wies

>> Read about this: Turkey stops oil tanker on Bosphorus

Shoot ourselves in the foot

“Here, too, we’re shooting ourselves in the foot, because it’s unlikely that the master plan won’t be betrayed. In the worst case, we get redeclared Russian oil by tanker.”
Thomas Staggemeier

We slow down but don’t change direction

“What has been seen lately are essentially measures that promote ‘business as usual’. There is no discernible consistent and comprehensive strategy towards renewables, including the necessary infrastructure. That would be the solution that would make us independent of oil, coal and gas and would also damage Putin in the long term.

So its oligarchs may sell less gas and oil to Europe, but at higher prices, and the rest and more goes to new markets. It remains to be seen whether the gas price cap will have the desired effect.

Okay, we try to slow down a little from the 180 km/h speed at which we race towards a meter-thick concrete wall. But we don’t change the direction of travel. Of course, we also need a way away from fossil fuels towards sustainable energy production. So keep going, but only as far as the turnoff into the road to Sustainabilitytown! Exactly the real will to turn is not recognizable, only the wanting to somehow continue in the same direction, if possible without loss of comfort.

But that will certainly end in maximum discomfort. Just like the concrete wall wouldn’t give way, neither will nature. The laws of nature, which have developed over billions of years, have an inevitable effect – they cannot help it. Grace our children, grandchildren and generations to come, God or whoever.”
Rolf Rimbach

Russia probably has more staying power

“The EU (van der Leyen), SPD and Greens with the traffic light have gone down the toilet with the sanctions. You have damaged our economy and the people of Germany more than the Russians. LNG can never be the solution because it is simply too expensive.

The Russians are sitting on so many raw materials that our industry needs that they simply have the staying power. Regardless of the sanctions, Russians aren’t starving, Russians aren’t freezing, and Russians have the same fuel prices as before. And you will hardly need to talk to the Russians about climate policy in the next 20 years.”
Alfred Schulte

German business and consumers are sanctioned

“Like most of the Russian sanctions, the price cap mostly sanctions the German economy and German consumers, because we have to accept the higher prices of the other suppliers. Russia can sell its products, especially in Asia, at a higher price than the price cap.”
George Scherer

We don’t need to be hypocritical

“The oil embargo is damaging Europe. You look at the dollar exchange rate, the ruble and the euro, and you can clearly see a loser, and it’s definitely not the ruble and it’s not the dollar. That proves it very clearly.

We have to protect our existence first and cannot afford de-industrialization. Also, let’s not be hypocritical: since when have we bothered buying oil from countries that don’t respect human rights? Look at Saudi Arabia and its war against Yemen.”
Pascal Lauria

>> Read our comment on this: The oil price cap can do something that other sanctions against Russia cannot

That’s useless

“The oil embargo hurts us much more than the Russians. The oil price cap is absolute nonsense, and we will all see that it does not work and that it tends to backfire.

Our politicians, and above all the wrong appointments in Brussels, let themselves be driven too much by the Ukrainian demands. When will someone finally tell the Ukrainians that they, too, must be willing to make concessions in order to achieve peace.”
Rupert Werkman

We have to pay with our taxes

“The oil embargo and the other measures hurt the Germans more than Russia. We have to pay back the money that the state borrows with our taxes in the next few years, without any guilt.

As a child I experienced the Second World War, it was our fault, but now???”
Gunter Fortmann

This only has painful consequences for us

“After the EU imposed a total of eight (ineffective) sanctions packages against Russia, is the oil embargo or the oil price cap supposed to bring the Russians to their knees?

This only has painful consequences for us. Not for the decision-makers in Berlin, but for the vast majority of people in this country, who care how high the gas bill is or how much a liter of petrol costs.”
Gero Schwarz

A pipe burst

“Us as citizens, quite simply.

Reason:

• Russian oil will be resold, other buyers will be found, India, China etc.; Oil will still be needed in the future.
• Despite the price cap at 60 dollars, the current crude oil price is 63 dollars; That’s not really much and probably to get over.

Externally, the political action may appear to make sense, but on closer inspection the price cap is a non-starter and the citizens are paying the price for it. Of course there are state compensation payments to reduce costs for citizens, but these in turn are financed by our taxpayers’ money.

Who caused the whole crisis (rising prices for oil/gas/commodities)? My motto is, first have (self-sufficient, other sources), then politely decline (sanction packages). Unfortunately, we have no alternatives other than letters of intent – contracts in the future, nothing…”
John Bayer

Climate protection is more important

“If our politicians were to realistically assess our increasing electricity and energy needs and the renewable energies that are still lagging behind, then they would have to reactivate and use our safe nuclear power plants until green electricity can finally supply our needs safely. Just the announcement that we would continue to use our nuclear power plants would drastically reduce world market prices for gas and oil and suddenly relieve us of many problems. It is much more important for the urgently needed climate protection, which hardly tolerates delay, to replace our climate-damaging fossil fuels with CO2-free nuclear power as far as possible.

If other countries switched off their nuclear power plants like we did, it would be almost impossible to save the climate and energy would become unaffordable.”
Kurt Hergenroether

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