$58 Billion Price Tag: Germany's Decision to Ditch Russian Gas

Germany's decision to cut Russian gas imports in 2022 has come at a steep price. According to estimates from the Finance Ministry, the country spent around $58 billion (50 billion euros) cushioning the impact of soaring energy prices.

This figure covers relief and stabilization measures such as electricity and gas price caps, a one-off payment to pensioners, and rescue packages for gas companies.

The reduction in Russian gas imports was a response to the escalation of the Ukraine conflict. Germany had previously relied on Russia for 55% of its natural gas consumption.

Experts warn that the overall economic toll of the energy crisis could be significantly higher, including the construction of new LNG terminals.