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Germany encounters deep recession if Russian gas supplies are cut

7.Germany encounters deep recession if Russian gas supplies are cut
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A halt in Russian gas supplies to Germany would cause a deep recession and the loss of half a million jobs, according to a senior economist in an interview published as Europe’s largest economy attempts to reduce Russian energy imports.

According to Achim Truger, a member of Germany’s Council of Economic Experts, if Russian President Vladimir Putin decides to cut gas exports to Germany, German industry could suffer significant long-term damage. According to most estimates, the cessation of Russian gas supplies would cause a severe recession.

A half-million jobs may be lost Truger was quoted in the daily newspaper Rheinische Post as saying.

Russia’s Gazprom cut Poland and Bulgaria off its gas for refusing to pay in roubles in the last month and threatened to do the same to others, creating fears that it could take similar measures against Germany.

 

 

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