March 28, 2023

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"Central": Higher price for Germany if Russian gas is banned

“Central”: Higher price for Germany if Russian gas is banned

The German central bank (Bundesbank) warned on Friday that if the EU imposes an immediate embargo on Russian gas, the cost of the move could be as high as 5% for Germany, which is heavily dependent on this energy resource. Gross domestic product this year.

In a statement, the Bundesbank said, “Germany’s real GDP could fall by as much as 5% compared to current economic expectations if Russia suspends gas imports voluntarily or abruptly.” “This means a surplus of 180 billion euros for national production,” he added.

Under such circumstances, the German economy will shrink by 2% this year, according to the report. Given the high inflation rate in Germany, it is likely to increase by 1.5 points in 2022 and two points in 2023, compared to the persistent flow of Russian gas imports.

EU member states have been deeply divided over the issue of a ban on Russian oil and gas imports since Russian forces began occupying Ukraine on February 24.

Oil and gas exports represent a major source of Russian treasury resources, and for this reason, many European countries want to eliminate this source.

The German government led by Olaf Scholz is one of the most important opponents of the immediate embargo on Russian gas because the country is heavily dependent on this resource.


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