International ratings agency Moody’s said on Wednesday that Germany’s target of reducing its dependency on Russian gas to 10% by 2024 will be difficult.
“While Germany has already gradually reduced its reliance [on Russian imports] from 60% in 2020 to 35% by mid-April, reaching the 10% target means replacing about 42 billion cubic meters, which will not be easy,” the statement reads.
The agency also warned that a halt to Russian gas would considerably weaken growth and fiscal metrics in both Germany and Italy. Moody’s cited negative economic impacts that will increase the two countries’ debt burdens.