Arab Press

بالشعب و للشعب
Friday, Mar 20, 2026

Germany’s economy is expected to contract under a Russian gas embargo

Germany’s economy is expected to contract under a Russian gas embargo

An embargo on Russian natural gas could cause Germany’s economic output to drop as much as 5 percent this year, the Bundesbank warned on Friday, potentially driving the country into a recession while pushing up already high consumer prices.
The central bank’s predictions, largely in line with those of several economic institutes, also served as a warning of the danger that Europe’s largest economy could face if Russia decides to cut off gas exports to Europe.

The central bank said its predictions were couched in uncertainty, given the unpredictable nature of the crisis surrounding Russia’s invasion of Ukraine. But its economic modeling showed that cutting off Russian natural gas, which before the war accounted for 55 percent of Germany’s supplies, would cause gross domestic product for the year to shrink 2 percent instead of growing by 3 percent.

“Natural gas prices are likely to rise the most, as Russian deliveries are difficult to replace in the short term,” the bank said. Roughly a third of all natural gas is used for industrial production, including steel and chemicals.

This week, the International Monetary Fund warned that the war in Ukraine would drag down the eurozone economy. It downgraded its forecast of economic growth to 2.8 percent from the 3.9 percent it had predicted in January.

Treasury Secretary Janet L. Yellen also warned that a ban on Russian gas could have a “counterintuitive” effect and harm Europe’s economy more than Russia’s by driving up the global price of fuel.

“Europe clearly needs to reduce its dependence on Russia with respect to energy,” Ms. Yellen told reporters in Washington on Thursday. “But we need to be careful when we think about a complete European ban.”

The European Union has banned Russian coal and is preparing a plan to embargo Russian oil. Although Germany has said it is working to end imports of Russian oil this year, it has been reluctant to move more quickly. Last year, Germany imported about a third of its crude oil from Russia.
Comments

Oh ya 4 year ago
Yes Germany shoot yourself in the head and ban Russian gas. Maybe it will stop you from shipping anymore overpriced crap BMW cars. Russia will just sell your gas to China and India

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Saudi Arabia Reports Drone Strike on Key Red Sea Refinery in Yanbu
United States Urges Citizens to Leave Saudi Arabia Amid Escalating Regional Conflict
Former Media Executive Chronicles Rise of Saudi Crown Prince in New Book
Saudi Aramco–Exxon Refinery in Yanbu Targeted in Latest Wave of Iranian Attacks
Greek-Operated Patriot System Intercepts Iranian Missiles Over Saudi Arabia
Asian Refiners Urge Saudi Arabia to Revise Oil Pricing as War Upends Markets
Arab and Muslim Ministers Convene in Riyadh to Coordinate Response to Iran Crisis
Saudi Arabia Expands Global Partnerships to Accelerate Vision 2030 Transformation
Europe and Japan Signal Readiness to Help Secure Strait of Hormuz Amid Escalating Crisis
Saudi Arabia Signals Firm Stance as Iranian-Linked Attacks Intensify
U.S. Lawmakers Press Rubio to Enforce Strong Safeguards in Saudi Nuclear Deal
Iran Issues Evacuation Warning to Gulf States After Strike on Major Gas Field
Saudi Arabia to Convene Arab and Islamic Ministers for Urgent Talks on Regional Conflict
Saudi Arabia Confirms Eid al-Fitr as Moon Sighting Determines End of Ramadan
Saudi Arabia Boosts Crude Exports to Highest Levels Since 2023, Data Shows
Iran Issues Warning to Gulf Energy Infrastructure Following Strike on Major Gas Field
Saudi Arabia Restarts Ras Tanura Refinery Following Drone Strike, Reinforcing Energy Resilience
Saudi Arabia Restarts Ras Tanura Refinery Following Drone Strike, Reinforcing Energy Resilience
Saudi Arabia Intercepts Ballistic Missiles Targeting Riyadh Amid Escalating Regional Tensions
Saudi Arabia Restores Significant Oil Flows Using Hormuz Bypass Amid Regional Tensions
Saudi Arabia Signals Potential Activation of Defence Pact with Pakistan Amid Escalating Iran Conflict
Saudi Supreme Court Urges Muslims to Observe Crescent Moon for Eid Determination
Saudi Supreme Court Urges Muslims to Observe Crescent Moon for Eid Determination
Saudi Arabia Reassesses Iran Strategy as Regional Conflict Tests MBS’s Diplomatic Bet
Iran Steps Up Drone Strikes on Saudi Oil Sites, Heightening Risks to Global Supply
Regional Fallout Grows as Iran Conflict Sends Shockwaves Across Jordan, Saudi Arabia, and Egypt
Saudi Arabia Intercepts Seven Drones in Intensifying Regional Security Threat
Saudi Arabia Intercepts Seven Drones in Intensifying Regional Security Threat
Saudi Arabia Weighs Regional Risks as Iran Conflict Deepens and Security Calculations Shift
Gulf States Confront Limits of U.S. Protection as Regional War Intensifies
Gulf Producers Rush to Reroute Oil Exports as Iran Tightens Control of Hormuz Strait
Saudi Gaming Investment Arm Acquires Strategic Stake in Capcom to Expand Global Influence
Iran Intensifies Strikes on Saudi Oil Infrastructure as Regional War Escalates
Saudi Arabia Targets South African Professionals in New Recruitment Drive Amid Regional Uncertainty
Formula One Faces Major Financial Hit as Bahrain and Saudi Arabian Grands Prix Cancelled Amid Middle East Conflict
U.S. and Saudi Firms Launch Local Production of Attritable Drone Systems in Saudi Arabia
Saudi Arabia and UAE Warn Rising Gulf Tensions Could Endanger Regional Security
Saudi Arabia Rejects Claims It Encouraged Prolonged War With Iran
Saudi Arabia to Host World’s Largest Single-Cell Protein Plant as Food Security Push Accelerates
Saudi Crown Prince Urges Trump to Continue Military Pressure on Iran
Iran Intensifies Drone Campaign Against Saudi Arabia as Gulf Conflict Escalates
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
When Is Eid al-Fitr 2026? Saudi Arabia Awaits Moon Sighting to Confirm End of Ramadan
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Iranian Missile Strike Damages Five U.S. Refueling Aircraft at Saudi Air Base
Washington State Pilot Among Six U.S. Airmen Killed in Military Aircraft Crash Over Iraq
Severe Storm Threat Looms Over Washington as Tornado Risk and Damaging Winds Target Mid-Atlantic
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Trump Supports FCC Warning to Broadcasters Over Iran War Reporting
Saudi Stocks Edge Lower as Tadawul All Share Index Slips Slightly at Market Close
×