Russia-Germany energy cooperation: How paradigm change affects Germany’s economy and politics

Abstract

The article analyzes the economic and political consequences for Germany of the essentially total breakdown of Russia-Germany cooperation on energy. The author notes that the breakdown jeopardizes Germany’s entire contemporary economic model built around imports of cheap Russian energy resources and makes the country increasingly dependent on the US and other exporters of hydrocarbons to keep its economy afloat. Special attention is given to political consequences of the crisis, including emerging geopolitical and domestic issues. The West consolidation to counter Russia and, further out in time China, is forcing Germany to sacrifice pragmatic defense of its national priorities in favor of the West’s ideological interests. Domestic consequences of the disrupted Russia-Germany energy cooperation include dissent growing within and among the political parties that make up the ruling coalition; deteriorating public approval of the federal government; increasing likelihood of dramatic changes in Germany’s Party system; and intensifying protests instigated by right-wing extremists in the East Germany States.