The CEO of German multinational chemical company BASF, Martin Brudermuller, has shared his concerns about Russia’s energy supply issues. Brudermuller warns that if the current cut-off of Russia’s energy supply continues, small and medium-sized energy companies will cease to exist, pulling Germany into a catastrophic economic crisis reminiscent of that following World War II.
BASF is the world’s largest chemical producer.
The company’s CEO shared his views in an interview with Frankfurter Allgemeine newspaper ahead of German officials, giving an early warning to industries and the general public about the possible natural gas shortage in Germany.
The deficit is reportedly the direct result of Putin’s demand that “unfriendly countries” must settle their energy payments in rubles. The Russian president’s declaration came in light of the recent Ukraine crisis and the resultant Western sanctions.
Although Germany aims to become independent from Russia in terms of gas, imports from Germany are currently unable to be produced fast enough to replace the need for Russian gas.
At the same time, Brudermuller states, “It’s not enough that [residents of Germany] all turn down the heating by two degrees now,” given that “Russia covers 55% of German natural gas consumption.”
In his statement, he stressed that if Russia’s gas vanishes overnight, “many things would collapse [in Germany],” which would be devastating.
Brudermuller continued, “We would have high levels of unemployment, and many companies would go bankrupt. This would lead to irreversible damage — to put it bluntly, this could bring the German economy into its worst crisis since the end of the Second World War and destroy our prosperity. For many small and medium-sized companies, it could mean the end. We can’t risk that!”
The grim warning of impending disaster if Russian gas was shut off came in response to questions about whether abandoning Russian energy is even viable.
The BASF CEO warned that the situation regarding sanctions versus their effects on countries other than Russia is not “black and white,” declaring that the German economy is on the verge of collapse.
A question asked by the newspaper reporter and Brudermuller’s response further clarified the CEO’s view on the situation.
“And what if, for example, Putin’s demand for payment in rubles leads to an immediate stop in gas supplies?” the press inquired.
“A delivery stop for a short time would perhaps open the eyes of many — on both sides. It would clarify the magnitude of the consequences. But, if we don’t get any more Russian gas for a long time, then we really have a problem here in Germany,” the CEO replied.
He explained, “At BASF, we would have to scale back or completely shut down production at our largest site in Ludwigshafen if the supply fell significantly and permanently below 50% of our maximum natural gas requirement. Minister Habeck has already activated the early warning level of the gas emergency plan.”
Separate sources indicate that in Ludwigshafen alone, this scenario could result in the immediate layoff of 40,000 employees or, at the very least, a reduction in working hours.
In the interview, Brudermuller also warned that many Germans are currently underestimating the effects of Russia turning down the taps — an occurrence he said would cause nothing short of a catastrophic calamity.