FX.co ★ Germany’s economy to collapse without Russian gas

According to economic forecasts, the ban on Russian gas imports will paralyze the German economy. Moreover, the country is highly dependent on Russian energy.

CEO of the Association of German Chambers of Commerce and Industry (DIHK) Martin Wansleben expressed his view on Germany’s economic growth in an interview with Deutschlandfunk. He said that the country had no justification for imposing embargo on Russian energy. The entrepreneur noted that Russia’s invasion of Ukraine had disrupted global supply chains leading to rise in commodity prices and energy prices in particular. Consequently, Wansleben believes that Germany will not be able to impose an embargo on Russian oil and gas. Martin Wansleben is convinced that the embargo would have more devastating consequences for Germany’s economy than the coronavirus pandemic. Wansleben predicted that Germany would suffer severely if it imposed a ban on Russian oil and gas. The expert noted that Russian energy is used for heating as well as for production, including the chemical industry. "If the chemical industry in Germany stops producing, then the wheels in Europe will stop in the long run.” <...> In the current situation, a gas embargo would be a disaster," Wansleben stressed.