Aggressive sanctions against Russia are sending financial shockwaves through Germany
Germany will be hit by a wave of bankruptcies due to Ukraine-related sanctions against Russia, according to Commerzbank CEO Manfred Knof.
“The energy supply in Germany is at risk, the supply chains are falling apart, we have high inflation,” Knof was quoted by the Handelsblatt newspaper as saying.
According to the executive, almost a third of Germany’s foreign trade was affected, forcing companies to grapple with complex problems with customers, including rising raw material prices and supply chain bottlenecks. supply.
“We must not fool ourselves: the number of insolvencies in our markets will probably increase and with it the banks’ risk provisions”, Knof said.
On Friday, the EU’s top diplomat, Josep Borrell, said the bloc’s foreign ministers will meet next week if member states fail to reach an agreement by the weekend on a ban on Russian oil.
Brussels revealed plans for a Russian oil embargo earlier this week. The measure is expected to take effect within nine months, with a variable deadline for different petroleum products.
Several EU nations, including Hungary, Slovakia and the Czech Republic, are seeking an exemption from the ban.
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.
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