Berlin’s goal of cutting energy ties with Moscow is not an easy task, the rating agency warns
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.