The IMF warned Tuesday that if Russia cuts off its natural gas supplies to the European Union, it could cause deep recessions in Hungary, Slovakia, the Czech Republic, and Italy.
IMF researchers said in a blog post that Hungary would hurt the most from losing access to Russian gas and could face a loss of over 6% of its gross domestic product (GDP). Since Hungary is so reliant on Russian energy, its President Viktor Orban secured an exemption from the EU’s ban on Russian oil.
Orban is also less hostile toward Russia than most EU members, so it’s possible Hungary could be spared from a Russian gas embargo unless Moscow decided to cut its supply to the entire bloc. So far, Russia has cut off some EU members over their refusal to pay for gas in rubles, and other supplies have been reduced due to Western sanctions.
The IMF said the economic pain could be offset if EU nations step up cooperation to share alternative supplies. Under the IMF’s best-case scenario, Germany, Europe’s largest economy, will shrink its GDP by about 1%. In the direst scenario, Germany’s GDP will be reduced by nearly 3%.
The EU is expecting Russia to cut off its gas supplies and is working on plans for energy cuts, which are expected to be proposed by the European Commission. According to The Associated Press, early leaks of a proposed plan asked EU members to reduce their consumption of gas by 15%.
26 thoughts on “IMF Warns of Deep Recessions in Europe If Russia Cuts Gas Supply”
Why are the Canadians holding the necessary parts hostage ?
They have to, sanctions, just like all the other cowards, they could get together and tell Biden to get lost, but all of them have a price, they are not real statesmen/women. They are not like the Hungarian Orban, he said, my people first, as did the Serbians. It takes character and courage.
It’s fascinating to observe how many Euro leaders are actively undermining peace and prosperity for their citizens.
In my opinion they are traitors of their country. Even morons knew that if you block energy from Russia, the prices will go up, sanctions work both ways, why should Russia export grain when we are out to destroy their economy. Russia did not do that, the USA sanctions nations including their allies and have been sanctioning Russia for years and Cuba, Iran and Venezuela and more.
The Western governments know what they are doing. The destruction of the EU is intentional, no rational government would do what they do.
Germany keeps NS2 shot on orders from Washington. They are on a mission of suicide. It could not be more insane.
NS2 is absolutely the tell.
As well as Amerikkkan “leaders”, Vooch.
Peace and prosperity; what IS that? We get by—-barely—-on SS and hubby’s pension, though we are incredibly fortunate to have good health care through the UAW.
I’ve lost $10 k on my modest investments since the war began and I’ll be long gone before they recover.
I’m sticker-shocked every week at the grocery store; they’re seems to be no end to price increases. While ByeDone is happily chowing down on filet mignon lovingly prepared by his private chefs, we’re eating hot dogs.
The wife and I spent some effort over the past 5 years arranging our lives for low cost living. The single biggest savings was Being able to live nearly car free. We own only 1 small car and hardly drive it. This year we’ll spend less than $200 on gas.
The gas supply to Germany was terminated yesterday and Iran signed a $40 Billion deal to replace Gazprom’s lost German income.
Good luck manufacturing cars or much else in Germany.
Isn’t Germany like most other western countries where the bulk of manufacturing has been given to China or other cheaper labor countries?
I don’t believe so, ED. The “Made in Germany” label is a symbol of excellence and a great selling point, and I don’t believe the Germans would relinquish that.
A few years ago I was looking at an expensive vacuum cleaner manufactured by a German company. I asked the salesman if it was actually MADE in Germany. When he affirmed that it was, I said “Sold!”
We have a Miele, several years old. Only the motorized rotating brush component is made in Germany, the rest of it: China.
So the high value parts are German made and the rest imported
Well, I’ll be. Mine must be older than yours; the box it came in said “Manufactured in Germany”.
I guess everybody eventually moves their production to China. Not that China isn’t capable of making good products.
Their Mittelstand, small family owned companies, are the backbone of the nations economy, they were wiped out after WW I. It is about to happen again.
Germany/EU, China and Russia are competitors which must be destroyed.
No, the Germans protected their industry, that is why they are still an exporter. With the demise of the German economy goes the EU and that will have global consequences, it will reach the US too. All thanks to the morons in Washington, Berlin, Paris, London, and Rome.
All of them are traitors and should hang from the next tree.
They knew about the grain and fertilizers, THEY KNOW what they are doing to the people. They know Ukraine is being wiped out and still they refuse to negotiate. They are the real criminals.
I agree with that.
Germany remains a manufacturing powerhouse
Vooch, the best little car I ever owned was imported from Germany. It was a 1973 Karmann Ghia, robins-egg blue, and a hoot to drive. It was probably four inches off the ground, but that little dude never once got stuck in snow 🙂
Killing two flies at once, Germany and Russia, big economic competition, will be gone if it works out. Only China left next on the list.
“According to The Associated Press, early leaks of a proposed plan asked EU members to reduce their consumption of gas by 15%.”
Which would mean what? A smaller percentage will freeze to death. But by all means, carry on.
When people in Europe freezes to death in the winter and we get scenes from “The Little Match Girl” in real life on the streets of Copenhagen, I wonder if EU citizens will finally wake up and realize if their proxy war against Russia was worth it.
There have been demonstrations in Europe already, our news does not report it. That will grow and Americans will start demonstrating even if the gas price gets lowered until after the election. The Democrats will lose big time, as they deserve and we get the government we deserve, nothing to be proud of.
The USA cut the gas supply from Russia, the NS2 IS READY, BUT IS NOT PERMITTED TO DELIVER, the GERMANS KEEP IT CLOSED ON ORDERS from WASHINGTON. The Besatzungsmacht has ordered it. Germany has been ordered to buy the more expensive LG from the USA.
By orders of the Besatzungsmacht the turbine for NS1 could not be repaired and maintained by Canada, due to sanctions.
One point, RUSSIA DID NOT cut the gas supply the US DID IT.
All Scholz has to do is to open the spigot on NS2 and NS1. This was planned by the morons in the State Department, and Biden is in on it.
The consequences of sanctions had to be known, they knew how big Russian grain and fertilizer exports are and how it would effect the global economy, not just Germany and the EU.
They knew, they are not that stupid, it is intentional and that is insanity.
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