oh, we're bringing environmental conservation to weiss with learning pass like global ideas. we will show you how climate change and environmental conservation is taking shape around the world and how we can all make a difference. knowledge grows through sharing, download it now for, for ah, the global energy industry in crisis gas and oil prices are searching as the u. s. and europe consider banning imports from russia, but can they live without russian energy? while you're, it's russian gas storage facilities are providing a source of concerns local, say they've had enough of helping to fund the kremlin and businesses around the world of in fresh to set that ties with russia. we're look at the impact sanctions

or having firms still operating on robots in berlin. welcome to this d. w business special, where we're asking can europe quit russian gas? and if you're watching on our youtube feed, you can leave your comments and questions. we'll try to answer some of them later on in the program. but 1st energy industry leaders are gathering in texas with their sector in crisis. rushes invasion of ukraine has delivered a shock to oil and gas markets and energy firms are under pressure to take a stand against moscow. governments are also planning to turn up the heat. international sanctions against russia have so far excluded the country's energy sector. but that's about to change. the u. s. and europe are exploring a ban on imports of russian oil and gas. attendees of sarah week and annual energy conference in houston are discussing how to replace russian supply. so now i see

that the u. s. is, is looking to venezuela is considering getting increased production from venezuela? well those barrels could have come from canada. melbourne, canada says it has spare pipeline and rail capacity and can move more oil to the united states. washington would be in dire need as its own. rigs are currently operating at 25 percent below pre pandemic levels and can't make up for the shortfall. opec plus producers have also fallen short of their target at supply increases as of late a ban on russian resources, however, would not only impact energy supplies. i'm in the mining business in russia is one of the world's largest suppliers of nickel and palladium. most of them are heavily used in the automobile industry and in the auto catalysts industry is a large supplier of pot out. and it's a large wire, obviously of oil and gas rush us war and ukraine hits the energy sector at

a crucial time as it was already reorganizing to slowly move away from fossil fuels . for now, it's unclear if that transition will be accelerated. i will sanity believes in more sustainable and rely loser fusions them out and avoiding improving sustainability was supposed to be the main theme of sara week. for now, the energy transition yields to a more urgent problem news that the u. s. and euro for discussing banning imports. of russian crude oil has driven the cost of a barrel to 14 year highs, but more crucially for european nations like germany, natural gas prices are at record levels. as the supply from russia seems ever less secure. russia exported on to 98000000000 cubic meters of natural gas in 2020 more than a quarter of that. as you can see, went to germany, which is by far moscow's biggest

e u. customer body than other members. states like italy and the netherlands are still well ahead of china, as you can see there, as for how important it is to the overall needs. well, you can see that russia, russian natural gas, she made up more than half of germany's imports in 2020. that is a key reason why europe would struggle to live without russian gas. it now seems so long ago. russian president vladimir putin meeting with royal dutch shell, c e o. in 2014. the 2 sides pledge to build on a 25 year relationship that would lead to the development of a liquefied natural gas project. i russia, jacqueline island, 8 years later, shell, another oil companies are turning their back on putin, after his war against ukraine. the i'm convinced that the economy and the oil and gas industry, which is the backbone of the russian economy,

is going to suffer because of those companies. we're bringing advanced technologies, a lot of cas know how oh, to russia and without their commitment to russian products. i don't think that the russian production of oil and gas can a go ahead and continue. but germany is still dependent on russian oil and gas. it relies on russia for 30 percent of its oil and half of its gas supply. germany could break its dependence, but no one in the energy sector believe the transition will be easy, then there was some kind of maybe hunger. if russia stops delivering gas, we could get through the next winter without letting people freeze without our industrial production, shutting down and without blackouts, but with or without russian gas. the power grid still has a capacity to fail on this on ohio, and it was discussed in local goals. can energy experts argue the european union

needs to expand its green energy sector in order to survive. but colon atomic power will still have to play a role. let's discuss further europe's reliance on russian energy in particular, russia natural gas. i asked leon is vicki from research consultants, energy aspects where the countries like germany had a problem on their hands. this is really european problem rather than individual countries, specific problem. if germany would be struggling with a supply of natural gas, it would automatically pull supplies away from other parts of europe. so that ultimately, again, this becomes a european problem when it comes answering the question whether we could do without russian natural gas in the short term. if there was, for example, complete stops to rush in close to europe. the short answer is yes, but this would obviously entail significant incisions in today tonight where we'd be talking about measures that include industrial demand,

destructions. for example, dar to make sure that we can put adequate gas into storage for next winter. so we took him out, having to handle rising gas prices, rising energy prices for, for europeans. is that what we're talking about here? yes, precisely. i think in the short term again, if we're talking about a complete sub to russian flaws, you would obviously see gas prices skyrocketing even more than they have been now. so even today in the morning, gas prices grew by around 40 to 50 percent. purely on worries of adequate supply, so you'll see price of skyrocketing and this is really the market trying to reduce gas demand from other sectors of the economy, such as, for example, from industry in order to make sure that there's sufficient gas in the system. so that we can put that into storage. so if we are going to see a complete disruption to rational flaws, this will just further intensify. you will need to see significant demand reductions in order for the market to balance. and presumably,

that would mean having to source natural gas or something similar to it from elsewhere. what, what are the options that europe has then the, the options are not, are not many. you're obviously looking at n g supplies. but the, your do you, the global energy market is already quite tied, and europe so far has not been very successful and trying to out price, particularly ne agent buyers off gas. so that you're looking at a, at a very tight market overall. i think the short term answer is if we need to bridge a general supply disruption from, from russia are going to be particularly focused on domestic supplies. so we would need to be starting to ask questions with respect to growing and, and whether we're going to increase production there in the short term. but also with respect to, for example, domestic european production of coal. and whether we're going to start pull, fired,

or again. so given all of this complexity that comes with trying to work without russian natural gas, is it really realistic that the you would impose a ban on it? well, i think when it comes to the possibility of it, absolutely, and i mean it's, it's still not being rejected by some member states, but i think policymakers need to be aware of the consequences of such a decision. and from the way the market is looking right now, as i said, there is no real way to source an adequate supply of natural gas from other from other countries or from the global energy market. which means that the only way that the european markets can actually balance is through demand destruction. so you would need to see policymakers intervening and domestic markets in order to force industrials to actually shut down the economic repercussions of this would

obviously be quite significant. so this is a trade off that european policymakers just need to be aware of in terms of what it means for natural gas prices. and in terms of what it means for the aggregate economy in europe. ok, leon, us, vicky from energy aspects. thank you so much for bringing your insights now is not just the flow of natural gas from russia to europe, that is proving itself to be problematic. moscow also has control over some european storage facilities for the communities around those sites. it's becoming a source of unease. mayer hands, peter haskin, looks out his office window at one of the largest gas storage facilities in europe . it's operated by a gas prom subsidiary and yes'm. gam in northern germany, gas exports are a key source of income for the kremlin, and it's war deutsch, desert design creek of with thousands of people are dying right now in this war

industry. and that means ultimately we here in germany and in this community are paying for it. so i don't think anyone here still stands behind this company mind in knowing that his modem stayed. the natural gas is piped in from russia and is stored in salt domes, deep under ground. what especially a noise the mayor is that the volunteer fire brigade is responsible for ensuring the security of the gas from plant that cost the town around $250000.00 euros a year. as online to find ballgame, dusty there ought to be an agreement that the operators of the gas storage cover our costs. it would help pay for the work that the fire department does. we've performed an analysis and found out that about 70 percent of their costs are related to the facilities fall importance yard of caesar and long dash j. the mayor has been negotiating with gas bombs, germans subsidiary,

asked dora for years so far without success. an opaque network with ass, dora when gas gas, cade and other gas from own companies, operates the largest gas storage facilities in germany. it owns important pipelines and it trades in russian natural gas. lawmakers say this causes communities to lose out on tax revenue baptistery. i know she's still in the past, these companies would suddenly change their name and that wouldn't be a single cent of tax income left out. and thought was that there's no way of contacting the people in charge as of the following. our experience with gas from here in this region has not been good so far, gas from has been able to operate freely on the german market. even building its own pipelines like here in eastern germany. but now the ukraine more is forcing germans to re think many of them say the government must have more control the

clover clack fuel pump fuel. the crisis shows we need much more transparency than we currently have. at the moment it's almost impossible to say who is actually involved with whom in which business and which gas is really flowing through which pipe with facial goth mayor hands. peter haskin is hoping for more support from the german government as the war rages in ukraine. people here worry about how much control the russian state has over their lives. must even busy joins me in the city. and i was going to try and help answer some of the questions that we've been getting on average youtube. so for the past week or so, thanks joining us, stays in the studio. lots of questions coming in, but let me just put one to you. this is from us. thank o buddha enough. he says, i don't understand how russian bank so isolated, well, same time or the gas applies. still continue to function. i why. why are we saying

that this was done intentionally rob? right. so there was this effort to create these massive sanctions that would hit hard weather was swift, whether it was the freezing, the foreign reserves of russia, central bank, but in both cases, the record bouts for energy. and why is that? that's because the reasons that you showed earlier is because europe is incredibly dependent on russian energy in every form, not just gas, but also oil. and also coal, 50 percent of you imports come from or the german imports of coal come from russia . that's also major numbers, so you can't just replace one with the other. and that's why we've been hearing over the weekend as there have been more voices calling for sanctions that actually do affect oil, gas, whatever. that's what i've been hearing more reservations from germany, especially they're incredibly tied to these markets. and while you may be able to get through this 1st winter without, you know, some of those supplies the next winter is really going to be a question. and the thing is, you know, these funds, it was calculated last week, i think there was one day in which there was 700000000 euros worth of gas purchases

from the u to russia that goes into the current account. it goes through state companies into the current account, and that also helps them offset some of that shrinking of the ruble as well. so it would be in effect of lever, but it would also hurt very much for europe. yes, we talk about russia in europe is if that discrete things, well actually that they're very much in mashed on the another question for you, steven jeanine toughest writes, how can sanctions work if china will support russia through them? this is a big question, right. and this has been a big question for weeks. there's been a observations that china and russia have been getting closer to each other in terms of tre, there's been a lot more trade going between the 2. there's been more energy deals in recent months, and then just today we've seen actually with visa, american express mastercard, announcing that they're pulling back their services. they're overseas services for russian card holders. we've seen that those banks are now turning to an equivalent chinese card payment system. how well that will work in comparison to the very

built out systems of those card holders are those card services? we don't know if you look at the actual energy trade between the 2. you know, you talked about how much was going to europe. russia has been expanding its connection with china in terms of energy, but it was poised to do, i believe, last year actually did 16 and a half 1000000000 cubic meters of gas. it had 10 times as much with europe than it did with china. right. so europe is still, it's major trading partners, largely because of establish pipeline. so if china wants to try and pick up some of the slack, it has a lot of work to do. although it could also probably get better terms in the coming weeks and years. so there's trying to want to move in on more market potentially, but the question also is do russian consumers then want to go to chinese products, chinese cars to replace european cars? who's gonna replace netflix? these are some of the questions you're going to look at. sure. lastly, the thing is, the west will have less control over whatever the russians tend to the other

already on. as you let us talk a bit further about the sanctions that have been put in place, i've got a question from phillip cue. he says, what's the effect of the russian ban on european airlines, shipping steel, aluminum space, titanium, and many other industries that did business with russia, the sanctions, punitive to russia alone or the rest of the world is also going to be affected by that. well, 1st of all, and some of those when it comes to the metals we've seen, those also have carved out to believe both steel and aluminum have carved out so they're not directly affected by sanctions. however, we've seen that even when something has a carve out like some russian oil, for example, that companies may still shy away from it. and so boeing, for example, has a joint venture with a russian entity for titanium, which is very important for the aerospace industry. it's very unclear what's gonna happen with that are the payment systems there for it to continue to operate with a can it bypass public pressure if there is any for it not to sort of pursue those avenues. you know, when it comes to other things, like airlines, for example,

there is a big effect. we heard tons of c o saying the other day that it's going to cost is company millions because of air space because of air routes having to go round. russia essentially now instead of going over it, there's also a problem for russian airlines and that they can't get a lot of air parts now for their aircraft. those are hit by sanctions and we've even seen some protests of that. but the international air transport association saying, hey, that actually starts to affect safety of those airlines. the point is however, that you've effectively grounded some russian airlines and that european airlines are going to have to give a wider birth to the country that cost money. and that cost supply lines that's going to raise the cost of business for everyone. so it does affect not just russia, but it affects everyone around the world. i just want ask you one more question, just will squeeze it in because it really cuts to the core of what we're talking about here. and as from an audio, he says, i do support the sanctions, but they ever worked. i mean, this touches on everything we just talked about, right? i mean, it depends on a lot of things how, how interwoven are the sanctioning countries and the sanction countries. in this

case, we've never seen an economy so big as rushes be sanctioned before. in the past, what we've seen is heavy weight like the u. s. sanctioning smaller countries for things like not developing nuclear weapons or them starting to develop nuclear weapons. heavy sanctions go in, they stop doing it. that happened with taiwan. that happened with south korea from the u. s. that had an effect in recent years. we can look at, i ran what's happened there. we've seen that, you know, the u. s. double down on sanctions, they hit them really hard pulling out a swift. iran has enriched even more and a greater rate. so it's really the question, especially with an economy as big as rushes as well, we really are going to see how this one works. and stephen busy, thank you so much of hearing that question. next, the online vacation rental market place at b and b is joining the league of businesses taking action to support refugees playing ukraine. it says it will be offering accommodation 210-0000 people escaping the russian invasion. the company sent letters to leaders in poland, germany,

hungary, andrew main, your informing them of their plans to help them move was in line with the mission of b and b dot org, which is a separate non profit entity. i've recently provided housing to over 20000 africa are joined on the program by caching. and so she's been the general manager of the european countries, including germany, russia and ukraine. thanks a lot. been with us on d to be business. just explain to us what the thinking is behind this scheme to provide accommodation for these a 100000 refugees. thank you for having me today. yes, the russia has invaded the ukraine, and that has devastated the lives of 1000000 people in the country. and it's probably producing one of the biggest few, many cerio prices post world war 2, right. so everyone has to support. everyone has to step up and we abby, and be believe that especially the business community has to step up and provide

support with resources and skills. so last week at b and b. org announced that we are providing free short term accommodation housing 210-0000 humans, being the ukraine. and what sort of take a value hatcher in the countries that you informed that this is happening a host's ready to take these people in. yes, they are having the super power is actually our house community. our host has been demonstrating over the past. yes. already that they are ready to support humans and need during times of crisis. so as you said in the summer, we've been housing already 21000 african refugees over the course of the past 5 years. we've been supporting refugee is 54000 refugees with housing through the incredible abbey in the community. and they are signing up to this course as well. and we've been seeing an incredible amount of interest to give you an idea.

we've been seeing 1500000 visitors to the key website for this initiative, which is b and b, or flash help hi from ukraine. and so far, $26000.00 host and host can be anything from a guest room to an accommodation with several bands. have signed up to support humans for the your crime. also, everybody has suspended his operations in russia and better reese or what does that actually involve? people? is bookings that canceled? well, what is that in practical terms? so yes, are in the house, taking the decision to suspend the business and russia and barrows, and what this practically means is that calendars are being blocked. so host cannot accept any bookings anymore and guess cannot book anymore. and what we've also been seeing is people outside of ukraine, booking rooms in ukraine with no intention of staying in them as

a sort of way of donating to claim is that something that i've been basing before? so this is again, i mean just such a beautiful out of support for the ukraine. it's actually a global grassroots movement where people decided to book with ukrainian house and not actually going there. right. and just as a means of providing direct help to humans, offering accommodation by abby and be in the ukraine. and this has seen a tremendous, tremendous report just to give you an idea of the numbers. this approximately has total $61000.00 nights booked so far. and has port approximately $2000000.00 in booking value into these countries. but just looking at at b and b and we appreciate it all this and, and appreciate this effort and such a beautiful movement. what i want to do today is just to encourage everyone to

support with free accommodation, the refugees that the humans that i've seen the ukraine and you'd like to be all ok . thank you for quick plug in that we do. we do actually yes. yeah. joining us on the program, i'm here thanks. i have any of the by now businesses around the world are under pressure to set that ties with russia. but in the meantime, there is with operations and employees based in russia are facing mounting problems . international sanctions mean they're praying, paying a heavy price for their presence safely. handling flammable lay quits comas. hoover beck has developed the specialized system that he is self to russia or used to sell to russia before the countries banks were kicked out of the international payment system. swifter has been criminal about and we can pay our employees there and we can't export goods because your customers can no longer make payments for their deliveries from. the hambrick port also saw russia as an important trading partner,

but days after rotterdam in its trade with russia. the terminal operator here followed suit, as others most likely will. as yet situations orders. there is a lot of uncertainty in trade these days. we are in close contact with our office in st. petersburg and they are constantly talking to customers, shipping clients and others to see whether shipments are alada. so but robin on to token vote you've yvonne's in the same uncertainty is also felt by companies in hamburg says the local chamber of commerce, $900.00 businesses here have relations with russia. a group of experts tries to sort out the situation, but also the name, the large companies with business all over the world are diversified to a point where they can compensate the loss of some partnerships with others. but specialized providers who might only do trade with russia. they are very directly affected and have a problem with the like the bit off mild among germany's trading partners. russia

only ranks 15th and yet the current sanctions are a huge challenge to many german businesses and the economy. that's all from this data we business special on what the warren ukraine means for yours dependence russian gas from off mr. you had over to our website, did we dot com slash business on the data? we used youtube channel. you can also find us on facebook, of course, until next time to get with

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