Scholz says boycott would imperil “hundreds of thousands of jobs”

BERLIN » A boycott of Russian oil and gas would have severe economic and social consequences in Germany and the rest of Europe, Chancellor Olaf Scholz told lawmakers Wednesday.

Conceding that Germany has grown dependent on Russia for its energy, Scholz vowed to end its reliance as quickly as possible, but said: “To do so from one day to the next would mean plunging our country and all of Europe into recession.”

“Hundreds of thousands of jobs would be at risk,” he added, speaking on the floor of the Bundestag, the German legislature.

The United States and some eastern European Union countries, such as Poland and the Baltic States, have been pressuring the bloc to boycott Russian energy exports.

But others have refused to join the effort, including Hungary, which is hugely dependent on Russian oil, and Bulgaria.

Germany, the continent’s largest economy, has been the most prominent opponent of a boycott. It relies on Russia for about 55% of its natural gas, 35% of its oil and half its coal.

Robert Habeck, Germany’s vice chancellor and economics minister, has been working on alternative sources of energy. He recently announced the construction of two liquefied natural gas terminals, and he visited Qatar this week to make a deal for natural gas.

In a lengthy social media post last week, Habeck said that even as Germany found alternative sources of energy, it would remain dependent on Russian gas and oil for many months, if not years.

Noting that the expansion of energy imports from Russia was a strategic goal under previous German governments, he said: “In retrospect, it was a serious strategic error. One that must be quickly corrected.”

But Scholz told lawmakers: “It serves no one’s interests if we deliberately put our economic substance at risk.”

On Wednesday, Russia announced it would accept only rubles for energy payments, forcing Western countries to support the Russian currency in order to keep energy flowing.