Russia’s war against Ukraine – all developments

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Ifo President Clemens Fuest advises of one complete severing of trade relations with Russia in the energy sector, for example, despite the invasion of Ukraine ordered by President Vladimir Putin away. “The bottom line is that it’s better if we don’t give that up,” said the top economist at an event organized by the Organization for Economic Development and Cooperation (OECD). Germany must now build up overcapacities in natural gas and stock up on supplies from other countries, for example through liquefied natural gas (LNG) deliveries. “If you have that, you should continue to buy gas, because then you can say to Putin: You are dependent on us, but we are not dependent on you,” said Fuest, who advocates a strategic approach pleaded.

That’s much better than not being able to sanction Putin at all, should trade with Russia have been virtually abandoned beforehand. “It will then be a kind of North Korea,” Fuest warned against a complete break in trade with Russia. “I don’t think anyone believes that it will be more peaceful.” North Korea has been almost completely cut off from trade with Western countries for years and is therefore economically impoverished, but has repeatedly provoked its neighbors with missile tests.

After the Russian attack on Ukraine, which not only caused human suffering but also disrupted many supply chains, Fuest does not believe in an end to globalization. “It might even be the opposite, a Boost for globalization“Said the Ifo President. “Simply because you don’t insure yourself against failures by doing everything at home now.” Instead, you have to diversify.


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