Germany warns against sanctions on Russian oil and gas

Quantum Commodity Intelligence - Germany has played down the idea of targeting Russian oil and gas with new sanctions, warning such a move could "threaten the social peace" as the spike in oil prices hit consumers in the pocket and fuels inflation.

Economy Minister Robert Habeck said Thursday he would not support an embargo on Russian imports and would "even speak out against it" given his country's heavy reliance on the supplies, according to the Daily Telegraph.

Last year, Germany relied on Russian gas and coal for 55% and 50% of its supplies respectively.

Habeck said Europe urgently needed to reduce its reliance on Russia for energy supplies as the war in Ukraine threatens to upend the market.

The EU, alongside the UK and the US, have rolled out several sanctions against Russia, including targeting banks and individual oligarchs. However, it has refrained from oil and gas amid fears such a move could drive prices up even further.

The US extended its list of sanctions on Wednesday in an attempt to cripple the Russian economy, including technology exports in the oil refining sector, but the White House said it was not yet ready to sanction Russian oil.