Minister Fayot expressed his view that the severity of Western sanctions has taken Russian President Putin by surprise, which shows that they are working. The threat of nuclear options made by the Russian President on Sunday afternoon are thus to be taken seriously, explained the LSAP politician: “This is not a madman, as many may claim, but he is very calculating and using the nuclear threat as a means to an end.”
There are already 368,000 Ukrainian refugees, but the number is expected to potentially grow to seven million. As Minister for Development Cooperation and Humanitarian Affairs, Fayot took the decision to immediately free up €1 million for Luxembourg’s partner organisations to help on the ground. He insisted that this only represents a first phase and that more help is to come.
The LSAP politician also talked about the round table that the government and energy providers will hold at Senningen Castle on Monday morning. Officials will seek to find a solution to the high prices for petrol, gas, and electricity, as well as a way to ease pressure from those households and businesses that suffer most under the situation.
Discussions around this topic were already initiated two weeks ago, so before the war in Ukraine began. Even though Minister Fayot was not willing to convey any details at the moment, he noted that a “significant” measure can be expected. A respective press conference is scheduled for 1.30 p.m. on Monday.
When asked about the Grand Duchy’s energy supply and reserves, Minister Fayot explained that Luxembourg imports 100% of its energy: “We are mostly connected to the Belgian energy market, which is not as dependent on Russian gas as Germany, for instance. Nevertheless, we still get about 15 to 20% of our gas indirectly from Russia, which means we will still see an impact.”
Minister Fayot also talked about the rising inflation, noting that markets are extremely volatile at the moment, which makes it difficult to predict how the situation will further unfold. A first wage indexation will likely be introduced in March and a second one could follow soon after, the politician conveyed.
When asked about the decision of former LSAP colleagues Etienne Schneider and Jeannot Krecké to step down from their positions on the boards of firms with Russian ties, Minister Fayot said that he is glad they decided to do so.
