Germany's top economic advisors issue a recession warning as Putin's gas deadline approaches.

• Imposing an immediate ban on Russian energy imports would result in a recession for Germany and all of Europe, as stated by Chancellor Olaf Scholz last week.
• On Wednesday, Germany's Economy Minister Robert Habeck issued a first warning about gas stockpiles.
• The war in Ukraine poses significant risks to growth, according to European Central Bank President Christine Lagarde.

On Wednesday, an independent economic think tank warned that Germany's heavy dependence on Russian energy could lead to a recession.

European economies are facing growing anxieties about the consequences of Russia's unprovoked invasion of Ukraine. The conflict has led to increased energy costs, rising food prices, and additional expenses due to the influx of Ukrainian refugees.

The possibility of Moscow cutting off its natural gas supplies to the bloc could lead to the collapse of many businesses.

The German Council of Economic Experts warned that the country's heavy reliance on Russian energy supplies could lead to a recession with higher inflation rates, according to a report released Wednesday.

Last week, Germany's Chancellor Olaf Scholz voiced a similar concern in Parliament, stating that an immediate ban on Russia's energy imports could lead to a recession not only for Germany but for all of Europe.

Germany, along with other EU countries, relies heavily on Russia for their energy needs, as pointed out by his remarks.

In 2020, Germany imported nearly 59% of its natural gas from Russia, while other EU countries, including the Czech Republic, imported even more, with the Czech Republic importing 86% of Russian gas and Latvia and Hungary importing more than their domestic needs.

On Wednesday, Germany's Economy Minister Robert Habeck issued a first warning on gas stockpiles, urging businesses and households to reduce their energy consumption, stating "every kilowatt hour counts," according to Reuters.

The Russian President's announcement that "unfriendly" nations must pay for natural gas in rubles has intensified Europe's energy dependency concerns. This move would help stabilize the Russian currency, which has fallen due to the invasion of Ukraine. Putin has set a March 31 deadline for the ruble payments.

The division of the eurozone increases the chances of a disruption in energy flows.

The German Council of Economic Experts advised Germany to act quickly to reduce its dependence on Russian energy sources and take measures to prevent a suspension of Russian energy supplies on Wednesday.

Germany's projected GDP growth rates are 1.8% this year and 3.6% in 2023, assuming no interruptions in energy supplies.

For Europe's largest economy, inflation is estimated to be 6.1% this year and 3.4% in 2023.

On Wednesday, Christine Lagarde, the President of the European Central Bank, stated that the ongoing conflict in Ukraine poses a considerable threat to economic growth and that European households are becoming increasingly pessimistic, which may lead to reduced spending.