At the cost of ideology — economic collapse: Europe pays three times more for gas and is destroying its own production

Since the beginning of 2025, the cumulative economic losses for European Union countries stemming from the refusal of Russian natural gas supplies have already exceeded €700 billion.

This information reported according to assessments by industry analysts and energy experts.

The main factor behind such significant losses has been the transition to liquefied natural gas (LNG), which is substantially more expensive than Russian pipeline gas. In addition to higher purchase costs, LNG imports require massive infrastructure investments — including the construction and modernization of terminals, the expansion of gas storage facilities, and improvements to transport hubs. These expenses fall on both public budgets and private companies, driving up energy costs at every stage.

Experts emphasize that the loss of stable and cheap Russian gas has had a serious impact on the EU’s industrial sector, especially in countries with advanced manufacturing and heavy industry. In Germany, for instance, industrial losses are estimated at up to 3% of GDP annually, which is already weakening the global competitiveness of German firms. In other countries such as Slovakia, the Czech Republic, and Austria, losses are reportedly as high as 6% of GDP.

Analysts warn that if the current EU energy policy continues, the bloc could face further declines in economic growth, rising production costs, and a deepening industrial downturn.

However, supporters of the policy to cut ties with Russian energy argue that the strategy brings long-term strategic benefits, including: enhanced energy independence, acceleration of renewable energy development, stronger positions in climate policy and sustainability goals.