The cut in Russian gas will push Europe’s largest economy into an “acute recession,” said Stephen Kutz, director of research at the Kiel Institute for Global Economy and one of the report’s authors. EU leaders have agreed to phase out all coal imports from Russia. An EU source told CNN Business that coal would be banned until August. A new, sixth round of sanctions is already under way, and some EU officials have called for action on Russian oil and gas exports. However, a ban on Russian gas in the short term would wreak havoc on Germany, which relied on Russia for about 46% of its gas in 2020, according to the International Energy Agency. It uses fuel to heat homes, generate electricity and power its factories. The European Union is already trying to reduce Russian gas imports by 66% this year and cut off all dependence on Russian energy by 2027. Last week, German Finance Minister Christian Lindner said the country was moving “as soon as possible” to abandon Russian energy, but put cold water on a sudden halt. “The question is, to what extent do we do more harm to Putin than to ourselves?” Lindner said in an interview with Die Zeit newspaper. “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 is likely to exacerbate inflation in Germany, which hit a 40-year high last month. Consumer prices rose 7.3% year-on-year, according to the country’s Federal Statistical Office. The main culprit: Rising gas and oil prices, which rose by almost 40% over the same period. BDEW, a German energy and utility union, said last week it was “ready to work out a detailed plan” to phase out Russian gas quickly, but urged politicians to be careful. “Despite all these, [cutting Russian gas] “This is nothing short of a transformation of the whole of German industry,” said Marie-Luise Wolff, president of BDEW. – Chris Liakos contributed to the report.
