IW boss calls Russian war on Ukraine ‘economic suicide’

With the war against Ukraine, Russian President Vladimir Putin is depriving his country of any prospects, according to economics researcher Michael Hüther. “Russia is committing economic suicide with the war in Ukraine,” the director of the German Economic Institute (IW) told the Stuttgarter Zeitung and Stuttgarter Nachrichten on Monday. Russia is also “politically degraded” and fails to achieve its military goals.

Hüther added that Russia was a “resource-based oligarch economy” with extreme corruption. The country will not find a short-term replacement for collapsing natural gas markets in the west because the necessary pipelines are lacking.

Hüther: Germany will never get gas from Russia again

In fact, Germany will never buy gas from Russia again. The current switch to liquefied natural gas from other countries will not be reversed because building the import infrastructure is very expensive, Hüther said.

The “organizational capacity of liberal democracies” was “once again underestimated during the crisis”, added the economist. At the same time, he expressed the hope that a devastating record of the Russian war of aggression could herald the end of conventional wars. From a “rational economic point of view”, these can no longer be managed today. “Thinking positively could also mean: this is the last such war that will be fought.”

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