German Chemical Industry Head Warns Against Relying on Russian Gas
The President of the German Chemical Industry Association (VCI), Markus Steilemann, has cautioned against relying on Russian gas imports even if peace is established in Ukraine. “Cheap gas from Russia was a sweet poison” he told the Süddeutsche Zeitung, adding, “We have experienced how the Russian government has used our dependence against us. We must learn from this.”
Steilemann’s company, Covestro, is currently being acquired by a subsidiary of the Abu Dhabi National Oil Company (Adnoc) from the United Arab Emirates. The manager believes the takeover will enable Covestro to grow faster, stating, “Our business is very cyclical and our revenues fluctuate. As the manager of a listed company, you weigh the decision to invest two billion euros in a new plant five times.” He added, “The new owner thinks longer-term than the capital market. That makes such investments and takeovers easier – and also part of our growth strategy.”
Steilemann has called for swift and bold reforms from the new German government, urging, “We need radical reforms in energy policy, corporate taxes and bureaucracy.” He emphasized the importance of tempo, saying, “The new government must make reforms happen in the first hundred days as if there were no tomorrow.”
The manager has also demanded that the energy transition be made more affordable. He criticized the previous government for following an “ideology-driven mantra” to build as many wind and solar power plants as possible, even if the costs for the grid infrastructure are spiraling out of control. Instead, the expansion of renewable energy should be intelligent and targeted, “according to the real demand and near the industrial centers where the energy is needed.