Germany's dependence on Russian gas is putting a strain on the industry

Germany's dependence on Russian gas is putting a strain on the industry

The causes of the current economic crisis in Germany are diverse, with dependence on Russian gas being identified as a decisive factor. Energy-intensive industries such as the Bochum steelworks are particularly affected by the drastic increases in energy prices. This led to companies like Thyssenkrupp Steel in Duisburg having to cut production and cut jobs.

Some political voices such as the AfD and the Sahra Wagenknecht alliance as well as Saxony's Prime Minister Michael Kretschmer have suggested increasing reliance on Russian gas again in order to stabilize the domestic industry. But economists and gas market traders warn against such a return as it could further weaken German industry. The existing dependence on Russian gas is seen as one of the main reasons for the sharp collapse of the German economy.

In Austria, which continues to purchase gas mainly from Russia, gas prices are still higher than in Germany. This makes it clear that a return to Russian gas does not automatically lead to cheaper prices. Rather, it emphasizes the need to reduce dependence on Russian gas and rely more on renewable energies in order to become more independent and competitive in the long term. Despite discussions about returning to Russian gas, the risks and long-term consequences are at the heart of the debate about Germany's economic future.