Occupation raids, attacks Palestinian organizations: EU, US and Canada are complicit!
Samidoun Palestinian Prisoner Solidarity Network | August 21, 2022
In the early morning hours of Thursday, 18 August, armed Israeli occupation forces invaded the offices of seven prominent Palestinian NGOs, civil society organizations and human rights defenders: the Health Work Committees, Addameer Prisoner Support and Human Rights Association, Al-Haq, Union of Palestinian Women’s Committees, Bisan Centre, Defence for Children International – Palestine, and the Union of Agricultural Work Committees. These organizations have all been designated by the Israeli occupation as “terrorist” in retaliation for their advocacy and community organizing work for Palestine, and then labeled “illegal organizations” in a military order covering the occupied West Bank of Palestine.
The invading forces ransacked the offices, confiscating computers, legal client files, documentation, printers and monitors and leaving clutter behind — as documented by the organizations’ surveillance cameras, recording the occupation forces’ invasion. The doors of the organizations were welded shut and a paper military order affixed to the door declaring their operation “illegal” under the occupation’s (illegal) military orders.
The organizations declared that they would not be silenced by these attacks, holding press conferences and returning to the offices to reopen them and continue their work. The attacks received widespread condemnation not only from Palestinian and pro-Palestinian forces but even from European governments whose policies and practices consistently target the Palestinian people and their fundamental rights.
Now, on Sunday, 21 August, occupation intelligence authorities — the Shin Bet — phoned Al-Haq director Shawan Jabarin to threaten him with interrogation and arrest if the organization’s work continues, while Defence for Children International – Palestine director Khaled Quzmar was summoned to and held under interrogation.
“Terror” Designations and Political Control
The invasions, interrogations, ransacking and attacks on these organizations reflect the failure of the occupation’s regime of “terror” designations to undermine their work. In 2021, not only did the regime designate Al-Haq, Addameer, DCI, Bisan, the UPWC and the UAWC as “terrorist” organizations — quickly followed by the military orders banning their work in the occupied West Bank of Palestine — it earlier in the year designated Samidoun (on 21 February 2021), followed by three more organizations. Previously and in a similar pretext, the occupation had issued a similar designation against the Health Work Committees along with designations of groups including the Arab Organization for Human Rights UK, the Palestinian Return Centre and Euro-Mediterranean Human Rights Monitor.
As we noted at the time, this
“indicates just how meaningless the term ‘terrorist’ is in the hands of the Israeli regime. It means precisely any organization, activist, or freedom fighter that challenges Zionist colonialism through any method or means of resistance at all. The flurry of ‘terrorist’ designations for organizations working to expose Israel’s crimes and organize Palestinians underlines this reality….These designations are not attacks on individual organizations but against Palestinian human rights defenders and those around the world who stand up for Palestinian liberation — and, fundamentally, the Palestinian people as a whole, especially the Palestinian prisoners in Israeli occupation prisons. They attempt to repress growing support for the legitimate resistance of the Palestinian people and confrontation of imperialism and Zionism.”
Further, it is clear that the use of such designations is intended to further political control over Palestinian society. These designations hinge on the allegation that organizations are close to one or another Palestinian resistance organizations, most commonly the Popular Front for the Liberation of Palestine or Hamas. Israeli officials have shopped around “evidence” to various governments that is so weak so as to be ludicrous, consisting almost entirely of unsubstantiated statements or on the idea that employing a person who supports a political organization (or, in some cases, relatives of people in political organizations “designated” by the occupation) is “funding” that organization by paying employees a salary for doing their job.
While it is obvious that these are false claims, the objective of this type of attack goes beyond simply lobbing allegations. Indeed, the European governments that have criticized the attacks and designations have also repeatedly affirmed their willingness to “examine evidence” and “act” if the Israeli regime “proves” that popular organizations, civil society groups and human rights advocates are in some way “tied” to Palestinian resistance movements. Not only are the organizations “innocent” of the Israeli claims, the claims themselves are fundamentally repugnant. The Palestinian people have the right to resist occupation and to be a part of political, social and armed movements in that resistance; this is not “terrorism” but an essential right of people under occupation and colonization.
Rather than affirming the right of Palestinians to resist and to organize themselves to achieve those goals, these European governments instead use these attacks to impose even greater political scrutiny and conditions. In many cases (such as the Netherlands), these governments recommend or require that all employees of these organizations must not be associated with any “banned” Palestinian political organization. If Palestinians are part of a political party or movement, they must be unemployable and impoverished: this is both the argument of the occupation and of the European states providing a meager “defense” of Palestinian civil society.
For the European funding agencies and many large foundations, supporting Palestinian NGOs has never been primarily about empowering or supporting the Palestinian people to achieve their liberation but rather about redirecting Palestinian energies into “state-building” and/or “reform” projects that exist within the confines of Oslo. Time and time again, these forces have introduced new conditional funding mechanisms and restrictions on everything from the political affiliation of individual employees to the names of buildings and schools.
European Union: Partners in Colonialism and Apartheid
This is borne out once again by the statement of nine European states — Belgium, Denmark, France, Germany, Ireland, Italy, the Netherlands, Spain and Sweden — which invokes the promotion of “democratic values and the two-state solution,” a fundamental contradiction as the so-called “two-state solution” itself is the legitimization of the colonization and occupation of 78% of Palestine and no solution at all for the Palestinian people. This brief comment lays bare the real political motivation for European involvement in funding Palestinian organizations, which is to limit rather than to achieve rights, justice and liberation. Further, the statement notes that “should convincing evidence be made available to the contrary, we would act accordingly.”
Here, the “evidence” being referred to would be any “links” between these NGOs and the Palestinian resistance. By including this statement in their alleged defense of the organizations, these European states actually encourage the occupation to continue its raids and ransacking, confiscation of files, arrests and interrogations, in an attempt to manufacture such “evidence”.
Of course, the position of these states themselves — members of the aggressive NATO alliance, defenders of the Israeli occupation in international arenas — is all too clear. The European Union, while rejecting the designation of advocacy and civil society organizations, continues to designate Palestinian resistance organizations as “terrorists.”
France continues to imprison Georges Ibrahim Abdallah while doing almost nothing to advocate for its citizen Salah Hamouri, jailed without charge or trial under Israeli administrative detention, as the government attempts to criminalize Palestinian activism, such as the Collectif Palestine Vaincra. Germany not only engages in weapons deals with the occupation, it also engages in severely repressive practices against Palestine organizing, particularly Palestinian communities in exile and diaspora, from the expulsion of Palestinian writer Khaled Barakat and Palestinian torture survivor and feminist Rasmea Odeh to the ban on 15 May Nakba demonstrations in Berlin. This is not to mention the links between Zionism and European colonialism from the very beginning of the Zionist project.
Now, Israeli prime minister and war criminal Yair Lapid is scheduled to come to Brussels on 6 October to convene the “Association Council” with all EU member states’ foreign ministers, for the first time in 10 years. This is the council under the EU-Israel Association Agreement, the agreement that provides for free trade for occupation products inside the EU and allows for occupation institutions to receive European grants for research and development.
Ending the EU-Israel Association Agreement is a long-time demand of the Palestine solidarity movement, but despite their expressed “concerns” about the violent repression imposed on Palestinians, these European states are planning to welcome Lapid and convene the Association Council after a long hiatus, celebrating their complicity in war crimes and crimes against humanity.
The Canadian government has refused to make any meaningful statement about these attacks, despite posing as a defender of “human rights.” U.S. officials stated their “concern,” while continuing to provide $3.8 billion in military support to the occupier.
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Samidoun Palestinian Prisoner Solidarity Network affirms that these attacks are part and parcel of the ongoing war on Palestinian existence and organization, carried out by the Zionist state and supported by the imperialist powers that ally with the Israeli occupation, as well as Arab reactionary regimes engaged in “normalization” and the Palestinian Authority. While PA officials declare their public support for the targeted organizations, the PA continues to engage in security coordination with the occupation, declined the use of its security forces to defend the organizations, and has even previously detained leaders, directors and staff of these organizations challenging its repression at the behest of the occupier.
We reaffirm that the primary way that we can confront these designations is by intensifying our organizing, action, mobilization and resistance to bring down the structures of colonialism, implement the right to return for Palestinian refugees, and support the liberation of all Palestinian prisoners and of Palestine, from the river to the sea. This includes campaigning to bring an end to the so-called “terrorist lists” used to terrify Palestinian communities and Palestine solidarity organizers, which only provide a weapon in the hands of the occupation and encourages it to engage in further specious designations.
We also urge all to take action to confront Lapid’s visit on 6 October in Brussels and to bring down the “EU-Israel Association Agreement,” an agreement built on the colonization of Palestine and the massacres targeting the Palestinian people. It is incumbent upon all institutions and organizations concerned about these raids and about the Palestinian people to adopt and implement the boycott and international isolation of Israel, including at the United Nations and its bodies.
Further, we urge all to join us in organizing to march in Brussels on 29 October for the March for Return and Liberation to the European Parliament, to demand an end to European complicity, involvement in and support for the colonization of Palestine, the siege on Gaza, the imprisonment of Palestinians and the denial of millions of Palestinians’ right to return home.
Crisis Government
eugyppius | August 20, 2022
To reduce energy consumption in the face of the looming German gas crisis, Economics Minister Robert Habeck has proposed a bizarre set of indoor temperature ordinances that continue the pattern of direct state interventions in the everyday life first established by mass containment.
Workspaces where hard physical labour is performed are not to be heated above 12 C, under the new rules. Those involving moderate labour while standing will have their temperatures capped at 16 C, and moderate labour while sitting at 17 C. Places where light labour is performed standing, will be permitted temperatures as high as 18 C, while white-collar office spaces where everybody sits and types will be permitted nothing warmer than 19 C. The heating of hallways and other common spaces will be outlawed, as will certain kinds of restroom water heaters. There will be a general ban on using electricity or gas to heat private pools, and shops will be ordered to keep external doors closed at all times. Political pressure is growing for similar ordinances limiting gas consumption in residences.
While some doubt that these rules can be enforced, German police have already proven effective at enforcing pandemic-era contact limits in private homes. And even if indoor temperatures are never systematically checked by authorities, I’m pretty sure that the simple prospect of unannounced inspections and fines will be enough for most employers to declare a third season of home office, with the added prospect of offloading higher gas prices onto their employees.
It is most curious, how this totally new catastrophe should call forth some of very same measures demanded by the Corona pandemic. Not only will home office return, but municipal pools will close again and cities will be kept dark at night, a de facto limitation on evening mobility that might well encourage some places to reimpose the curfews last seen in the winter of 2020/21. Meanwhile, some of the very same spaces recently commandeered for excess hospital capacity and mass vaccination will be repurposed as heated shelters for the old, the sick and the poor.
Not any unified plan, but rather a long series of contingencies, have caused the German gas crisis. Yet the steadfast refusal of the Scholz government to consider any course of action that might ameliorate the shortage, always with a new excuse, grows every day more unsettling.
There’s the obvious explanation, that the Greens in government are merely taking advantage of this opportunity to achieve their higher goal of restricting fossil fuel consumption, as they’ve always wished. But I think there might be another, deeper way to understand this too. I suggest that we’re seeing here the emergence of a new political style, which you might call Crisis Governance—or, as a friend put it, “the continuation of Corona policy by other means.” One of my core themes here has been the deepening demobilisation of western states, as power is diffused downwards from the political apex into the bureaucratic institutions, the press and major corporate enterprises. The great advantage of this power-sharing is a near-total uniformity of political views that it has inspired across the socio-cultural elite, but it comes at the cost of initiative, coordination and strategy. Crises seem to be one of the only ways our new, demobilised states can overcome their paralysis and act to further any kind of positive political programme.
More at A Plague Chronicle.
German Electricity Prices Spiraling Out Of Control… Tripling Since 2000… Blackouts, Unrest Loom
By P Gosselin | No Tricks Zone | August 19, 2022
Sun and wind don’t send any electric bills, the green energy swindlers used to tell us.
Changing over to sun and wind energy would cost only one euro a month more, Germany’s former Environment Minister Jürgen Trittin once promised. All we had to do was accept their master plan.
Today the swindle is uncovering, and it may be too late to avert the massive damage that’s coming our way.
At Facebook, Helmut Bauer posted the most recent chart depicting Germany’s electricity rates for end-consumers. It’s a blood bath:
Electricity prices for German end-consumers, in eurocents per kilowatt-hour. Source: BDEW, Verivox.
What a mess; they’ve reached 41 cents a kilowatt-hour and it’s about to get much worse – especially for the people who can least afford it. Expect social unrest to boil over the months ahead as prices and shortages inflict pain on the poor. We’re in uncharted territory.
Hey, not to worry: German Chancellor Olaf Scholz promised that police will not open fire on demonstrators.
German Official Trashes Cost of Living Protesters as “Enemies of the State”
Says they’re extremists who want to overthrow the government

Getty Images
By Paul Joseph Watson | Summit News | August 17, 2022
A top German official has trashed people who may be planning to protest against energy blackouts as “enemies of the state” and “extremists” who want to overthrow the government.
The interior minister of the German state of North Rhine-Westphalia (NRW), Herbert Reul (CDU), says that anti-mandatory vaxx and anti-lockdown demonstrators have found a new cause – the energy crisis.
In an interview with German news outlet NT, Reul revealed that German security services were keeping an eye on “extremists” who plan to infiltrate the protests and stage violence, with the unrest being planned via the Telegram messenger app, which German authorities have previously tried to ban.
“You can already tell from those who are out there,” said Reul. “The protesters no longer talk about coronavirus or vaccination. But they are now misusing people’s worries and fears in other fields. (…) It’s almost something like new enemies of the state that are establishing themselves.”
Despite the very real threat of potential blackouts, power grid failures and gas shortages, Reul claimed such issues were feeding “conspiracy theory narratives.”
However, it’s no “conspiracy theory” that Germans across the country have been panic buying stoves, firewood and electric heaters as the government tells them thermostats will be limited to 19C in public buildings and that sports arenas and exhibition halls will be used as ‘warm up spaces’ this winter to help freezing citizens who are unable to afford skyrocketing energy bills.
As Remix News reports, blaming right-wing conspiracy theorists for a crisis caused by Germany’s sanctions on Russia and its suicidal dependence on green energy is pretty rich.
“Reul, like the country’s federal interior minister, Nancy Faeser, is attempting to tie right-wing ideology and protests against Covid-19 policies to any potential protests in the winter.”
“While some on the right, such as the Alternative for Germany (AfD), have stressed that the government’s sanctions against Russia are the primary factor driving the current energy crisis, they have not advocated an “overthrow” of the government. Instead, they have stressed the need to restart the Nord Stream 2 pipeline, end energy sanctions against Russia, and push for a peaceful solution to end the war.”
Indeed, energy shortages and the cost of living crisis are issues that are of major concern to everyone, no matter where they are on the political spectrum.
To claim that people worried about heating their homes and putting food on the table this winter are all “enemies of the state” is an utter outrage.
As we highlighted last week, the president of the Thuringian Office for the Protection of the Constitution, Stephan Kramer, said energy crisis riots would make anti-lockdown unrest look like a “children’s birthday party.”
“Mass protests and riots are just as conceivable as concrete acts of violence against things and people, as well as classic terrorism to overthrow it,” Kramer told ZDF.
Germany plans China-style color code vaccine passport upgrade with multiple tiers of “rights”

By Tom Parker | Reclaim The Net | August 10, 2022
German Health Minister Karl Lauterbach has announced that the nation’s digital contact tracing and vaccine passport app, Corona-Warn-App (CWA), will start assigning different colors to citizens based on whether they received a COVID-19 vaccine within the last three months.
The CWA will assign one color to citizens who add proof that they received a vaccine within the last three months and a different color to citizens who add proof of vaccination that’s more than three months old. Only those with the color showing that they’re “freshly vaccinated” (have received a vaccine within the last three months) will be exempt from Germany’s mask requirement in public indoor spaces.
Other citizens, including those who received multiple vaccines but had their last vaccine more than three months ago, will have to show proof of recent recovery from COVID or a current negative test to get an exemption from this mask requirement.
Germany’s Berliner Zeitung noted that the colors codes in the vaccine passport app would “give different rights in the future” and said the system would put citizens who are already quadruple vaccinated on the same legal footing as those who are unvaccinated.
Berliner Zeitung also reported that this new German vaccine passport system would be similar to China’s color code vaccine passport system. China’s system assigns a green, yellow, or red code to citizens. Those with a green code are allowed to move freely, those with a yellow code may be asked to stay home for seven days, and those with a red code have to quarantine for two weeks.
Despite moving to this color code vaccine passport system, Lauterbach has admitted that the goalposts could shift at any time and that if too many freshly vaccinated people make use of the mask exception, Germany will change the rules and close the exception.
Lauterbach, who is quadruple vaccinated, announced this new color code vaccine passport system four days after he contracted COVID. The new vaccine passport system is being introduced as part of Germany’s “Infection Protection Act.”
Health agencies defended the rollout of vaccine passports and other COVID surveillance measures by claiming that they would prevent the spread of the coronavirus. However, in recent weeks, government health experts have admitted that COVID vaccines don’t prevent infection.
Despite this admission, Germany and other nations are continuing to push far-reaching, restrictive vaccine passport systems. Some countries are also combining vaccine passports with digital ID or rolling out more invasive COVID surveillance devices such as wristbands and ankle bracelets.
EU Robbing Global South of Cheap Gas in Quest to Replace Lost Russian Supplies
Samizdat – 08.08.2022
The European Union is in the throes of an unprecedented energy crisis after taking steps to reduce dependence on Russian oil, natural gas, and coal to “punish” Moscow for its military operation in Ukraine. Skyrocketing energy prices and falling availability have sparked growing concerns about bloc countries’ fate come winter.
European countries are resolving the energy shortfall at home by outbidding developing nations for gas contracts, “increasing the misery of millions of people,” and threatening to plunge entire countries into chaos, Handelsblatt reports.
“While Europe fears supply shortages in winter, the energy crisis has already hit other parts of the world with full force. In Bangladesh’s capital Dhaka, power supply is not guaranteed even in hospitals. Young mothers report on how they torment themselves with their newborns during hot summer nights because even fans cannot be switched on,” Handelsblatt contributor Mathias Peer wrote.
A similar situation is seen in Pakistan, which has experienced “one power blackout after another,” and “also as a consequence of Europe’s failed energy policy,” Peer indicated.
The observer explained that the EU’s headlong rush to reduce dependence on Russian gas has triggered “massive turbulence on global energy markets,” with fleets of liquefied natural gas (LNG) tankers which ordinarily carry cargoes to Asia diverted to Europe instead.
“In the bidding competition for deliveries, states like Bangladesh, whose per capita income is 95 percent below that of Germany, have what has become a hopeless mission,” losing out on contracts, resulting in the paralysis of gas-fueled power plants “and massive problems for hundreds of millions of people in the affected countries,” Peer noted.
The Handelsblatt contributor suggested that it was “all too understandable” for the EU to try to reduce its dependence on Russian energy in the wake of the Ukraine crisis, and suggested that Europe is not to blame for the energy crisis.
“But Europe’s attempt to find alternatives must not be at the expense of uninvolved third countries. It is the EU’s responsibility to ensure that by solving its supply shortages, not further aggravate the crisis in other countries. Reducing consumption must therefore take priority over diverting resources from other parts of the world, and in this regard the European gas contingency plan is far from being ambitious enough,” the observer suggested.
Peer emphasized that a more “considerate approach” is needed to stop Brussels from continuing to “play into [Vladimir] Putin’s hands.”
“His propaganda – which states that it is not Russia but the West and its sanctions that are responsible for the current crisis – is already affecting many more people in emerging countries than Europe would like,” the columnist concluded.
The crisis in Ukraine as well as US and EU moves to curb Russian energy and food exports to the West and other countries have served to exacerbate the inflation, energy price crunch, and global hunger crises which have accumulated over the past two years after the breakdown of the world economy thanks to COVID. President Vladimir Putin has characterized Brussels’ push to wean itself off Russian energy as “suicidal,” and warned that higher energy costs would collapse the bloc’s economic competitiveness.
The energy crisis has prompted European countries to begin a search for new sources of energy in Africa, including Algeria, Nigeria, and Tanzania. However, even before the escalation of the Ukraine crisis, some African leaders have resisted the new European energy “scramble for Africa,” with Algeria shutting off the taps to Spain over Madrid’s support for Morocco in the dispute over Western Sahara, and Nigerian Environment Minister Mohammad Mahmood Abubakar accusing developed nations of spending years starving Africa’s natural gas projects of funds on the grounds that they contribute to climate change.
Former German chancellor says Russia wants a ‘negotiatated solution’
Free West Media | August 3, 2022
Former German Chancellor Gerhard Schröder has expressed confidence that Russia would seek a negotiated solution to the Ukraine war. During his recent trip to Moscow, he also met with the Russian President. According to him, the Kremlin would like to negotiate.
“The good news is that the Kremlin wants a negotiated solution.”
In an interview with Stern magazine and RTL/ntv broadcaster, he said that the recently reached agreement on grain exports from Ukraine was an “initial success” that could perhaps “slowly be expanded into a ceasefire”.
In addition, the SPD politician again defended his contacts with Russia stating that it was not illegal.
In view of the gas crisis, the former chancellor also recommended commissioning the Nord Stream 2 pipeline from Russia and described this as the “simplest solution” in view of possible gas bottlenecks.
“It’s over. When things get really tight, there is this pipeline, and with the two Nord Stream pipelines there would be no supply problem for German industry and German households.”
“If you don’t want to use Nord Stream 2, you have to bear the consequences. And they will also be huge in Germany,” said Schröder. Anyone who heats with gas is already feeling the effects: that is half of the country’s 40 million households. Compared to the prices of December 31, 2022, gas will quadruple after further increases for consumers have been announced.
German mayors want Nord Stream 2 opened
Samizdat | July 27, 2022
Berlin’s policy of trying to give up imports of Russian natural gas is likely to create hardship and spark unrest, seven mayors from the German island of Ruegen wrote in a letter sent to the regional and federal governments on Wednesday. They also urged the federal government to allow gas imports via the Nord Stream 2 pipeline, given the current technical difficulties with Nord Stream 1 – something Berlin has steadfastly rejected.
In the letter addressed to federal economy minister Robert Habeck and Manuela Schwesig, prime minister of Mecklenburg-Vorpommern, the mayors “strongly condemn” the current conflict in Ukraine but urge the government to consider the damage its policy could do to the German population and the economy, according to the news agency DPA.
“We are of the opinion that the path taken by the federal government to disconnect from Russian energy sources is not the right one,” the seven mayors wrote. Initially drafted by the leaders of Bergen, Binz and Sassnitz, the letter was later signed by four more jurisdictions on Ruegen, Germany’s largest island and a popular tourist destination.
Giving up gas imports from Russia would mean an explosion in the cost of living, which would lead to social instability and unrest that could get out of control, the mayors wrote, according to German media. Calls from the federal government to save energy – such as showering less and foregoing hot water – “defy understanding,” they added.
“As the mayors of this island, we don’t want to have to accept any further restrictions,” Sassnitz city manager Frank Kracht told the Mecklenburg-Vorpommern affiliate of the TV station NDR.
Rejecting the proposals to expand the number of wind turbines near residential areas, calling them a health hazard, the mayors advocated “a general rethinking of the solution to the current problems in relations with Russia.”
Among their suggestions was to get additional natural gas via the Nord Stream 2 pipeline. Finished in late 2021, the pipeline from Russia to Germany under the Baltic Sea was just waiting for the operating permit from Berlin – which was suspended indefinitely on February 22, two days before Russia sent troops into Ukraine.
NS2 was supposed to double the volume of Russian gas exports, but was delayed by US sanctions seeking to protect Ukraine’s gas transit earnings. Nord Stream 1, which continues to supply Germany with gas, is currently operating at only 20% capacity, due to maintenance requirements. Its operator, Gazprom, says several turbines at the Portovaya compressor station need servicing to maintain certification. The first one was held up by Canada, citing anti-Russian sanctions over the conflict in Ukraine, until Berlin intervened seeking an exemption. NS2 does not use Siemens turbines, and can be maintained regardless of the sanctions.
Berlin has refused to even consider the possibility of using NS2, however. Economy minister Habeck has said that the pipeline cannot operate without certification. He also accused Russian President Vladimir Putin of trying to damage EU solidarity with Ukraine by driving up the price of gas.
“Putin has the gas, but we have the power,” Habeck said on Tuesday, appealing to Germans to stand together.
Recent polls showed widespread pessimism in German industry regarding future business prospects. Commenting on the turbine delay last week, Foreign Minister Annalena Baerbock said gas shortages could lead to an insurrection.
“If we don’t get the gas turbine, then we won’t get any more gas, and then we won’t be able to provide any support for Ukraine at all, because then we’ll be busy with popular uprisings,” she told the TV outlet RND. Baerbock hastened to add that this may have been “exaggerated” and insisted most Germans supported sending weapons to Ukraine, though.
BASF Prepares To Slash Ammonia Production In Germany Amid Worsening NatGas Crunch
By Tyler Durden | Zero Hedge | July 27, 2022
German chemicals company BASF SE paid an extra 800 million euros ($809.5 million) to keep its plants operating in the second quarter compared with a year earlier amid skyrocketing natural gas prices. The impact of high energy prices has forced the company to make a difficult decision: slash the production of ammonia, which could have potential consequences for farming to the food industry.
“We are reducing production at facilities that require large volumes of natural gas, such as ammonia plants,” BASF Chief Executive Martin Brudermuller said in a conference call after an earnings report.
Brudermuller said BASF would tap external suppliers to fill the deficit as German plants reduced output. He warned about potential supply disruptions that could boost fertilizer costs for farmers.
Reuters details how ammonia plays a critical role in manufacturing nitrogen-based fertilizers, plastic-making, and diesel exhaust fluid. A byproduct of ammonia production is high-purity carbon dioxide (CO2) which is heavily used in the food industry.
The news of BASF reducing ammonia production because of soaring NatGas prices comes as Russian state-owned energy producer Gazprom PJSC is expected to halve supplies via Nord Stream 1 to Europe to about 20% today. EU member states agreed Tuesday to reduce NatGas demand by 15% over the next eight months, though countries like Germany, without any liquefied natural gas (LNG) port terminals to replace Russian pipeline NatGas, might have to make more considerable sacrifices.
Benchmark NatGas prices in Europe at the Dutch TTF hub hit their highest level since March. Prices have shot up 35% in a week, over 200 euros per megawatt-hour (MWh), as Putin turns the screws on Europe by reducing pipeline capacity to Europe.
“Chemical companies are the biggest industrial natural-gas users in Germany, and ammonia is the single most gas-intensive product within that industry,” Reuters said.
Arne Rautenberg, a fund manager at Union Investment, said ammonia is a prime candidate by chemical companies to cut production first over the NatGas supply squeeze.
“In the northern hemisphere, nitrogen fertilizer is applied primarily during the spring. It can also be produced in the United States and shipped to Europe,” Rautenberg said, adding that the CO2 supply for the food industry could experience disruptions.
The chemical industry lobby VCI indicates German ammonia production has been curbed (some of which began last October) considerably because of soaring energy prices. This could soon impact industries that rely heavily on ammonia and ripple through the economy already facing recession.






