Germany’s prolonged energy crisis was caused by the loss of Russian gas supplies, Chancellor Friedrich Merz has admitted.
German industry has been hit particularly hard by soaring energy costs, which are now the third-highest in the world after those in the UK and Japan. Once Europe’s industrial powerhouse, Germany abandoned cheap Russian gas imports in 2022 while phasing out nuclear power in favor of renewables, driving up production costs and accelerating the decline of energy-intensive industries.
Moscow has repeatedly said it remains ready to resume gas deliveries through the remaining string of the Nord Stream pipeline, but the offer has received no response from Berlin.
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