IMF estimates losses of Europe in complete rejection of Russian gas

A complete cessation of gas supplies from Russia, combined with a cold winter in a number of Central and Eastern European countries, could lead to a reduction of up to 3% of GDP.

The remarks came from the Director of the European Department of the International Monetary Fund (IMF) Alfred Kammer, TASS reports.

“The complete cessation of the remaining gas flows from Russia to Europe, combined with a cold winter, could lead to a shortage and rationing of gas consumption, which would entail GDP losses of up to 3% in some countries of Central and Eastern Europe and another jump in inflation across the continent,” — Kammer said.

The IMF representative noted that European authorities are now "faced with serious compromises and difficult policy choices."

“They need to bring down inflation while helping vulnerable households and economically resilient companies cope with the energy crisis,” Kammer added.