BERLIN, February 1. /TASS/. Germany will need more gas supplies from Russia in the medium term in the context of Europe’s energy transition, Chairman of the German Eastern Business Association (OAOEV), Oliver Hermes said on Tuesday.

"We should also not forget that more than 40% of our oil and gas imports come from Russia. The last few months have shown very clearly that we are still dependent on natural gas in the process of European energy transition," Hermes said.

"In the medium term, we will need more rather than less gas imports from Russia," he stressed.

The Chairman of the OAOEV specified that "both the Nord Stream 2 gas pipeline and the capacities of the Ukrainian gas transmission network are required to reliably supply Europe with natural gas, and in the future, with hydrogen, until the final abandonment of fossil fuels occurs."

Hermes noted that possible new economic sanctions, in particular against Nord Stream 2 or against the Russian financial sector, would lead to serious losses for both sides.

In his opinion, anti-Russian sanctions will contribute to further rapprochement between Russia and China in matters of security policy, and will also lead to the creation of advantages for Chinese companies.

The head of the OAOEV focused on the fact that German business is against any form of disunity.

"Not only in the sphere of trade, energy and finance, but also in the sphere of security, we need European solidarity, that is, a pan-European security architecture that includes Russia and Ukraine," he stressed.

Hermes also pointed out that the Helsinki 2.0 negotiations are now needed, which will cover a wide range of topics, including climate change, security and the economy.

"The time has come to hold a conference on security and climate cooperation in Europe, and why not again in Helsinki," he concluded.

Last week, Vice Chancellor, Minister for Economic Affairs and Climate Protection of Germany Robert Habeck said that Russia is observing all agreements on gas supplies, and the main volumes of gas from Russia to Germany do not come through the territory of Ukraine and Poland, but through the Nord Stream 1 pipeline.

Germany, he said, "depends on about 55% of Russian gas." The minister pointed out that the gas market in Germany is "completely deregulated", that is, in his opinion, "there is no possibility for state intervention" in it, and there are no state reserves of gas. He noted that in the light of the experience of this winter, when the filling of underground gas storage facilities is at an all-time low level, measures should be taken to prevent a repetition of such a situation.

About Association

The German Eastern Business Association (OAOEV) is the major regional initiative of the German economy for 29 countries in Central Europe, Eastern and Southeastern Europe, in the South Caucasus and in Central Asia. The OAOEV supports its members in their projects, arranges contacts and answers questions about market entry. The OAOEV was founded in May 2018 through the merging of the Eastern Committee (founded in 1952) and the Eastern Europe Business Association of Germany (founded in 1989). It is supported by six central associations of German business and has around 350 member companies.