Germany will be battered with a wave of bankruptcies due to Ukraine-related sanctions against Russia, according to Commerzbank Chief Executive Officer Manfred Knof.
“The energy supply in Germany is at risk, supply chains are breaking down, we have high inflation,” Knof was quoted by the Handelsblatt daily as saying.
According to the executive, almost a third of Germany’s foreign trade has been impacted, forcing companies to navigate complex issues with customers, including surging commodity prices and supply-chain bottlenecks.
“We shouldn’t delude ourselves: the number of insolvencies in our markets will probably increase and the risk provisions of the banks with it,” Knof said.
- On Friday, top EU diplomat Josep Borrell said the bloc’s foreign ministers will meet next week should member states fail to reach an agreement by the weekend on banning Russian oil.
Brussels unveiled plans for a Russian oil embargo earlier this week.
The measure is expected to come into force within nine months, with the timeframe varying for different petroleum products.
Several EU nations including Hungary, Slovakia and the Czech Republic are seeking an exemption from the ban.