IMF: EU could lose 3% of GDP if it loses Russian oil and gas supplies

Speaking on the sidelines of the spring meetings of the International Monetary Fund (IMF) and the World Bank, the head of the IMF’s Europe department, Alfred Kammer, suggested that Europe could hold out for six months if not There is Russian gas, but the economic effects will then be severe.

Europe must import from Russia to meet most of its energy needs, especially natural gas, and IMF economists have assessed the economic damage if the region loses supply from Russia.

Mr. Kammer said that, in the first six months, Europe can respond with alternative sources and use of gas reserves. However, if the region loses supply from Russia until winter and for a longer period, the effects on the economy will be substantial.

European countries have considered suspending Russia’s energy, in response to its military campaign in Ukraine, while Russia also halted exports in response to sanctions against the government.

The IMF forecasts the total cost of a loss of Russian oil and gas supplies to the European Union (EU) at 3% of GDP, depending on the severity of winter. Mr. Kammer called for solutions to prepare for that possibility.

According to him, there is not a single option with high efficiency, but many small measures are needed to achieve a big impact such as finding alternative sources of supply as many countries have embarked on.

Mr. Kammer urged countries in the region to take measures to mitigate the impact, such as reducing consumption to increase reserves.

* Invite readers to watch programs broadcast by Vietnam Television on TV Online and VTVGo!