Scholz Tells Ex-Chancellor Schroeder to Exit Russia Energy Posts

(Bloomberg) -- German Chancellor Olaf Scholz called on former leader Gerhard Schroeder to give up board seats on Russian energy companies in the wake of Russia's invasion of Ukraine.

Schroeder, 77, is chairman of state-owned Russian oil giant Rosneft PJSC and of the shareholder committee of Nord Stream AG, which built a Russia-to-Germany natural-gas pipeline that Scholz halted last month. Schroeder, a Social Democrat like Scholz, served as chancellor from 1998 to 2005.

“My advice to Gerhard Schroeder is to withdraw from these posts,” Scholz said in an interview with broadcaster ZDF on Thursday. “I hope he reconsiders the decisions he has made in the past.”

Scholz's comments reflect a fast-paced realignment of German policy toward Russia and President Vladimir Putin, whom Schroeder met in Moscow also after retiring from politics. Bundesliga football club Borussia Dortmund revoked Schroeder's honorary membership this week.

Scholz, who took office in December after serving in former Chancellor Angela Merkel's cabinet, called for a cease-fire in Ukraine and the withdrawal of Russian troops. While humanitarian aid supplies to Ukraine are still flowing, that is likely to get more difficult, he said.

Scholz was criticized by opponents and allies alike in the weeks ahead of the Russian attack for perceived dithering and weakness in the face of Russia's mounting aggression toward Ukraine.

Scholz said Sunday that Germany will set up a 100 billion-euro ($111 billion) military fund and pledged to lift defense spending to the NATO goal of at least 2% of gross domestic product, a reversal after years of calls from the U.S. and the alliance for Germany to step up.

The government also reversed Germany's longtime reluctance to send weapons to conflict zones and agreed to provide Ukraine with anti-tank systems and surface-to-air missiles. The policy shift is backed by 78% of the German public, according to a Forsa poll published Wednesday.

“We are faced with very long-term, strategic decisions that will quickly increase the capabilities of our armed forces,” Scholz said Thursday. That requires procuring equipment “that can also be successful in an increasingly technological world of defense,” he said.