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Germany to scrap gas levy over neighbours’ threats to boost Russian imports

Central and eastern member states say expensive transit tax is damaging energy diversification efforts

Berlin has said it will abolish a controversial tax on gas piped through Germany to its neighbours, after countries such as the Czech Republic and Austria warned they could be forced to increase Russian imports.

Sven Giegold, the German secretary of state for economic affairs and climate action, said on Thursday that the government would abolish the levy at the start of 2025 after EU member states said it was costing them tens of millions of euros in additional fees.

“It was never our intention to hamper . . . the diversification away from Russian gas,” Giegold said. “Quite the contrary, the income from that levy financed mainly by German customers has contributed to filling gas storage facilities and by that way stabilising prices.”

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