Previously, Russia supplied half of Germany’s gas and coal imports and a third of its oil. Gas is mainly used for heating houses and apartments, and in industry it is also used as the main material. Until now, gas has also been indispensable for electricity generation to offset fluctuations in renewable energy.
Russia’s share of energy imports has fallen sharply in recent months. They are replaced by gas imports from other European countries and liquefied natural gas (LNG) supplies from around the world. German consumers have to pay a high price for these deliveries.
The Munich-based Institute for Economic Research (Ifo) estimates that skyrocketing energy prices will cost Germany nearly €110 billion in lost real revenue. As a result of wage and rate negotiations, workers will be paid correspondingly less. At the same time, the current decline in real income is likely to continue for years to come.
