According toDeutsche Bank, the recession in Europe will be more severe and drawn out than had been thought.
Europe should prepare for a cold winter of rationing and power cuts as countries struggle to replace Russian gas imports.
The strategists at the Wall Street bank said this week that they now expect a longer and deeper recession than they did in July.
The trading bloc's members are expected to suffer a recession this winter due to higher levels of gas consumption.
Russia's Gazprom reduced its natural gas deliveries to Europe by 20% in July. At the beginning of September, the state-run energy giant completely stopped all the flows.
Peter Sidorov is a senior economist at the bank.
According to the bank, the EU has made policy changes to help the 27 countries.
The team said that the baseline call for a mild recession this winter is now too benign.
Natural gas prices in Europe have gone up since the beginning of June due to lower gas supply. In the same time period, the euro has fallen by 8.6%.
According toDeutsche Bank, Europe will need to impose cuts to gas consumption as a result of Moscow shutting down. It will have a negative impact on trade.
It predicts a fall in consumer spending due to soaring energy bills.
That could cause the eurozone's GDP to fall by 3% from July to the same month next year. It would be a drop in growth of 50% larger than the fall during the European debt crisis.
The impact of a recession in the US and the European Central Bank's interest-rate hikes will make it more expensive to borrow.
There could be more pain for Europe if there is a cold snap. Some countries could be forced to ration food, while households are struggling to pay their heating bills.
The near-term impact this winter will be most affected by the extent of rationing, whether through enforced cuts or price-based mechanisms, as well as uncertainty effects on consumer and firm behavior.
They said that there will be tight gas supply and high prices in the future. Europe's businesses and institutions will continue to be weighed down by that.
An even sharper winter downturn can't be ruled out due to colder-than- usual weather, supply chain shortages caused by industrial gas cuts, and structural competitiveness concerns.
There is a map showing where Europe gets its natural gas.