Saudi Press

Saudi Arabia and the world
Saturday, Apr 11, 2026

Germany faces $240 billion hit if Russian gas is cut off

Germany faces $240 billion hit if Russian gas is cut off

Germany would plunge into a deep recession if its supply of Russian natural gas was suddenly shut off, the country's top forecasters warned on Wednesday.

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.

Revelations of atrocities committed in Bucha while the suburb of Kiev was under control of Russian forces prompted the European Union to escalate economic sanctions against Moscow and go after Russia's vast energy exports for the first time since it invaded Ukraine.

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, generate electricity and help power its factories.

The European Union is already trying to slash imports of Russian gas by 66% this year, and break its dependence entirely on Russian energy by 2027.

Last week, Germany's Finance Minister Christian Lindner said the country was moving "as quickly as possible" to ditch Russian energy, but poured cold water on a sudden stop.

"The question is, at what point do we do more harm to Putin than to ourselves?" Lindner said in an interview with newspaper Die Zeit.

"If I could only follow my heart, there would be an immediate embargo on everything. However, it is doubtful that this would stop the war machine in the short term," he added.

Targeting Russian gas supplies would likely worsen inflation in Germany which hit its highest level in more than 40 years last month. Consumer prices rose 7.3% from the year before, data from the country's Federal Statistics Office showed.

The main culprit: Soaring prices for natural gas and oil, which rose by nearly 40% over the same period.

BDEW, an association of German energy and utility suppliers, said last week that it was "ready to work out a detailed plan" to phase out Russian gas quickly, but urged politicians to proceed with caution.

"After all, [cutting Russian gas] is about nothing less than the transformation of the entire German industry," Marie-Luise Wolff, BDEW's president said in a statement.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Strategic Saudi-Bahrain Causeway Closed Amid Security Concerns as Trump Deadline Approaches
Saudi Arabia Keeps Red Sea Oil Exports Flowing Despite Regional Tensions
Pipeline Attack Cuts Significant Share of Saudi Arabia’s Oil Export Capacity
Saudi Business Leader Abudawood Appointed Chairman of Merit Incentives Group
TotalEnergies Confirms Damage at Saudi Refinery Following Security Incident
Saudi Arabia Launches Early Construction Phase for King Salman Stadium Project
Saudi Shift Away from Longstanding Dollar Oil Framework Gains Attention Amid Iran Conflict
Türkiye and Saudi Arabia Resolve Long-Running Transit Visa Dispute
Saudi Oil Capacity and Pipeline Flows Reduced as Supply Risks Intensify
TotalEnergies Reports Damage to Saudi SATORP Refinery Following Security Incidents
Gulf States Assess Prospects of U.S.-Iran Truce as Regional Stability Efforts Intensify
South Korea Resumes Honey Exports to Saudi Arabia Following Sanitary Approval
Saudi Arabia Carries Out Sentences in Eastern Province Following Security Convictions
Saudi Sovereign Wealth Fund Backs King Street’s Regional Credit Strategy
Saudi Arabia Secures World Cup Return as Egypt Celebrates Landmark Qualification
Iran and Saudi Arabia Intensify Diplomatic Engagement Amid Regional Tensions
Russia and Saudi Arabia Open Visa-Free Travel Corridor for Citizens
Saudi Oil Output Capacity Reduced by 600,000 Barrels Per Day Amid Regional Conflict
Saudi Arabia Suspends Operations at Select Energy Sites as Precautionary Measure
Saudi Arabia Halts Operations at Multiple Energy Facilities Amid Heightened Tensions
Global Markets Jolt as Iran Signals Ceasefire Breakdown and Rising Regional Tensions
King Street Aligns with Saudi Sovereign Wealth Fund to Expand Alternative Investments in Middle East
Attack on Saudi Arabia’s Jubail Petrochemical Hub Raises Global Supply Concerns
Debate Emerges Over Saudi Strategic Decisions as Gulf Cooperation Council Dynamics Come Into Focus
Saudi Arabia Expands Full Workforce Localisation to 69 Professions in Major Labour Reform
Emerging Alliance of Pakistan, Turkey, Egypt and Saudi Arabia Signals New Regional Power Dynamic Amid Iran Conflict
Iran Linked to Strikes Across Gulf States Following Refinery Attack Escalation
Saudi Arabia Voices Concern Over Fragile US–Iran Ceasefire Stability
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
Saudi Arabia’s Key East-West Oil Pipeline Targeted Following Ceasefire Announcement
Iran Targets Saudi Arabia’s East-West Oil Pipeline in Escalating Regional Tensions
Trump Warns of Civilizational Stakes as Iran Halts Negotiations
Saudi Companies Expand Remote Work Measures Ahead of Iran-Related Security Concerns
Iran Warns of Strikes on Saudi Energy Infrastructure if US Targets Its Facilities
Iran Urges Civilians to Form Human Shields Around Nuclear Sites as Diplomatic Deadline Approaches
Saudi Arabia Raises Oil Prices to Record Premiums Amid Supply Pressures Linked to Iran Conflict
Key Saudi-Bahrain Causeway Closed Amid Heightened Security Concerns Linked to Iran
Formula One Calendar Gap Explained as Fans Await Next Grand Prix
Growing Strain on the Petrodollar System Comes Into Focus Amid Iran Conflict
Reported Strike on Saudi Arabia’s Jubail Complex Raises Global Energy Supply Concerns
FedEx Introduces New Digital Tool to Streamline Imports into Saudi Arabia
Iran Claims Strike on Saudi Arabia’s Jubail Petrochemical Complex Amid Rising Regional Tensions
Taiwan to Source Oil Shipments from Saudi Arabia’s Red Sea Ports
Saudi Arabia Evacuates Riyadh Financial District as Precaution Amid Regional Tensions
Saudi Arabia Balances Ambitious Economic Vision Amid Regional Tensions and Financial Pressures
Budget Saudi Arabia Reports Strong Full-Year 2025 Financial Performance
Saudi Arabia Expands Investment in Capcom With Stake Reaching Six Percent
Saudi Arabia Assesses Significant Economic Impact From Regional Conflict Involving Iran
US Beef Secures Expanded Market Access in Saudi Arabia
Jordan and Saudi Arabia Declare Absolute Solidarity in Response to Iranian Threats
×