The following opinion article by Robert Amsterdam was published in Germany’s Süddeutsche Zeitung.

In a shock to German consumers and politicians of all stripes, on January 1, 2016, Russia suspended supplies of gas to Germany through the Nord Stream pipeline. Russian President Dmitri Rogozin announced that the shut-off will continue until Germany agrees to a 100% increase over current pricing. Germany maintains that under a multi-year contract currently in force Russia cannot impose such a drastic increase in gas pricing.

Gazprom AG Chairman Gerhard Schröder stated, “100% may seem like a steep increase. However, given the recent deterioration of Russia’s economic position, it is in Germany’s interest to continue to subsidize Russian domestic gas prices and promote the survival of Russian production capacity.” Meanwhile, Berlin’s allies, many of whom have negotiated separate gas supply contracts with Moscow, distanced themselves from the fracas, maintaining that despite President Rogozin’s increasingly alarming anti-German rhetoric, this is merely a commercial dispute and Russia’s shutoff is simply the exercise of a contractual right.