Russian fuel cut-off might price Germany 220 billion euros

The country would lose 220 billion euros ($238 billion) in economic output over the next two years in the event of such a shock, according to a report by five German economic institutes. German GDP would rise by just 1.9% in 2022, and contract by 2.2% in 2023. Growth would be 2.7% this year if the gas keeps flowing.

Cutting Russian gas would push Europe’s largest economy into a “sharp recession,” said Stefan Kooths, research director at the Kiel Institute for the World Economy and one of the report’s authors.

EU leaders agreed to phase out all Russian coal imports. An EU source told CNN Business that coal would be banned by August. A new, sixth round of sanctions is already being discussed, and some EU officials have called for action on Russian oil and gas exports.

But a ban on Russian gas in the near term would wreak havoc on Germany, which relied on Russia for about 46% of its natural gas in 2020, according to the International Energy Agency. It uses the fuel to heat homes,…

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