Germany's economy could lose $240 billion — 6.5% of its annual output — over the next 2 years if Russian oil and gas were cut off immediately

If Russian gas were halted immediately, Germany would lose 220 billion euros in economic output over the next two years. The Gemeinschaftsdiagnose report was released Wednesday by economic institutions advising Berlin.

Reports of Russian atrocities in Ukraine have led to calls for a ban on Russian energy imports. In the first quarter of 2022, Russian gas accounted for 40% of Germany's gas imports.

A 6.5% hit to Germany's economic output would be caused by an immediate embargo on Russian oil and gas supply.

The decision to become independent from Russian supplies of raw materials is likely to remain valid even when the military and political situation calms down again, according to a report.

Russian President Vladimir Putin signed a decree last month requiring countries that import Russian gas to pay in rubles. He threatened to cancel existing contracts if they didn't comply.

Germany activated an energy emergency plan. The country is now in the early warning phase of the plan, with Berlin calling for all energy consumers to save energy and reduce consumption. If the situation gets worse, the European manufacturing powerhouse might ration gas in the last stage of the plan, with industry first in line for power cuts. The move could lead to job losses.

According to a report last week, Christian Sewing, the president of Germany's B, said that the country's GDP growth would slow to 2% in 2022.

Robert Habeck, Germany's Economy Minister, said in a March 25 press release that Germany will end its dependence on Russian gas by 2024.