Scholz, like every German chancellor before him in recent memory, is beholden to the powerful German industrial lobby, and facing an economic downturn in the middle of high inflation would be hugely unpopular. That's all there is to it. Natural gas is a major component of heavy industry (and agriculture, and a whole lot of other stuff besides heating), and Germany just won't work without it. Other nations around it also refused any gas embargo, it's just Germany that gets the flack for it. Why? Who knows. Hating on Germany is an ever popular activity and that the conservatives are now foaming at their mouthes is fun to see. I mean, how could he have denied them their god given right to rule?
Putin doesn't need to have any dirt on Scholz. Also, decrying humanitarian aid to refugees is a little strange. That's just how the Dublin agreement is supposed to work. That one of the biggest crybabies about sticking to Dublin and not helping with the 2015 refugee crisis is now drowning in refugees would be delicious irony if it weren't for the suffering of innocent people (and we all love hypocritical winging, right? Right?).
Make no mistake, Merkel would have waffled about just as much. Oh, and she'd have used more of her trademarked platitudes, like "We must not let ourselves be divided on this issue", the only difference is that she wouldn't have run afoul of Germany's very own dual Rupert Murdoch: Friede Springer and Liz Mohn, because she's friends with both.
edit: Not a German, by the way. I also am highly biased against the CDU, if that wasn't obvious from prior posts, so if you find any polemics that you disagree with, feel free to do so.
edit 2: The SPD has a whole lot of connections to Russia, that part is true, of course. However, you'll find plenty of parties in Europe, some that have ruled or are ruling at the moment, that do. Nobody refused Russian money until it became unpopular, and that was only a while ago. In France, 42% for Le Pen might not seem much, but given today's rather charged political climate and (understandable) anti-Russian sentiment, I think it is really telling that 42% of French voters still cast their lot in with someone with known Russian ties. Heck, Le Pen's party was basically bankrolled by the Russians.