Paradox in Germany: Rejecting Russian Gas, Industry Burdened by Expensive Energy

Four years after the collapse of German-Russian energy relations, Chancellor Friedrich Merz has publicly cited the absence of Russian gas as a factor behind the country’s prolonged energy crisis. His remarks expose a major paradox facing Europe’s largest economy. Berlin refuses to return to dependence on Moscow and is determined to maintain its energy separation from Russia. However, Germany has yet to fully find alternative energy sources that can match the price, volume, and flexibility of the Russian gas it once relied upon. Merz made the statement in a ZDF summer interview broadcast this week. He was not specifically asked about reopening the Nord Stream pipelines, but rather about unfulfilled campaign promises and low public trust in his government. Merz argued that conditions have changed significantly since the campaign, citing the war in Ukraine, difficult relations with the United States, challenges from China, and a prolonged energy crisis caused by the absence of Russian gas. The statement does not mean Merz views Russian gas as the sole cause of Germany’s economic problems, nor is he calling for the Nord Stream pipeline to be reopened or for energy cooperation with Moscow to resume. Yet the remark is significant. It marks the first time in this context that Merz has explicitly linked the protracted energy crisis to the loss of a supply source that was once a foundation of German industry. The current energy crisis differs from the situation in 2022, when the halt of Russian gas flows raised fears of insufficient supply for households and industry during winter. Germany now has more supply options. Gas can enter via European pipelines, liquefied natural gas (LNG) terminals, small-scale domestic production, and storage facilities. Data from the Federal Network Agency, the Bundesnetzagentur, shows Germany imported 1,031 terawatt-hours of gas throughout 2025. Of this, 44 percent came from Norway, 24 percent via the Netherlands, and 21 percent via Belgium. Around 106 TWh, or 10.3 percent of total imports, entered through German LNG terminals. The Netherlands and Belgium in this data primarily indicate the countries through which the gas entered the German grid. The gas itself was not necessarily produced in those countries, as some may originate from LNG unloaded earlier at European ports.