What if Germany is cut off from Russian oil and gas?

Germany depends on Russia for about one-third of total energy consumption. If it is cut off from Russian energy imports, it will need to compensate either through alternative supply sources, fuel shifting and economic reallocation, or demand reduction. In this scenario, the macroeconomic effects highly depend on how much the production structure can adjust to the reduction of fossil energy imports and on how substitutable these imports from Russia are by imports from other suppliers. Benjamin Moll analyses the situation and makes policy recommendations.