Bundesbank on Friday (April 22) warned that the European Union's ban on Russian gas imports will cost Germany almost $1.95 billion.

Germany's most powerful bank said that the Russian gas embargo will plummet the country's Gross Domestic Product (GDP) by 5 per cent.

This will lead to a rise in energy prices, increase inflation and trigger one of the deepest recessions in decades.

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Bundesbank said that it is not possible for industrial consumers to replace Russian gas with an alternative for three-quarters of the year.

Christian Lindner, Germany's finance minister, has said that the country is moving ''as fast as possible.''

''We are willing to stop all energy imports from Russia, it's just a matter of time,'' he said.

''In the end, we don't want to have any further business with Putin,'' he told BBC.

''We have to be patient,'' he added after Ukrainian President Volodymyr Zelensky criticised Germany's energy payments to Russia by calling them ''blood money.''

Also read |&nbsp;<a href="https://www.wionews.com/world/russia-ukraine-war-satellite-images-show-200-new-graves-in-ukraines-mariupol-472830" hreflang="en">Russia-Ukraine war: 200 new graves found in Mariupol, claims mayor as satellite pictures emerge</a>

Germany's Social Democratic Party slammed Chancellor Olaf Scholz for being too lenient with Russia.

It accused him of dragging his feet on deliveries of heavy weapons to Ukraine and asked to take tougher action against Russian President Vladimir Putin.

In response, Scholz said in an interview with German weekly Spiegel, "distorted and slanderous depiction" annoys him adding that the potential to send arms to Ukraine from the stocks of the Bundeswehr had been "largely exhausted."

According to him, the centre-left Social Democrats were "bound into the Western and transatlantic alliance".

"What is still available will absolutely still be delivered." He was referring to artillery munitions and anti-tank weapons.

Meanwhile,&nbsp;Foreign Minister Annalena Baerbock said, "There are no taboos for us with regard to armoured vehicles and other weaponry that Ukraine needs."

(With inputs from agencies)

Bundesbank on Friday (April 22) warned that the European Union's ban on Russian gas imports will cost Germany almost $1.95 billion. Germany's most powerful bank said that the Russian gas embargo will plummet the country's Gross Domestic Product (GDP) by 5 per cent.

Bundesbank on Friday (April 22) warned that the European Union's ban on Russian gas imports will cost Germany almost $1.95 billion. Germany's most powerful bank said that the Russian gas embargo will plummet the country's Gross Domestic Product (GDP) by 5 per cent. This will lead to a rise in energy prices, increase inflation and trigger one of the deepest recessions in decades. Bundesbank said that it is not possible for industrial consumers to replace Russian gas with an alternative for three-quarters of the year. Christian Lindner, Germany's finance minister, has said that the country is moving ''as fast as possible.'' ''We are willing to stop all energy imports from Russia, it's just a matter of time,'' he said. ''In the end, we don't want to have any further business with Putin,'' he told BBC. ''We have to be patient,'' he added after Ukrainian President Volodymyr Zelensky criticised Germany's energy payments to Russia by calling them ''blood money.'' Also read | Russia-Ukraine war: 200 new graves found in Mariupol, claims mayor as satellite pictures emerge Germany's Social Democratic Party slammed Chancellor Olaf Scholz for being too lenient with Russia. It accused him of dragging his feet on deliveries of heavy weapons to Ukraine and asked to take tougher action against Russian President Vladimir Putin. In response, Scholz said in an interview with German weekly Spiegel, "distorted and slanderous depiction" annoys him adding that the potential to send arms to Ukraine from the stocks of the Bundeswehr had been "largely exhausted." According to him, the centre-left Social Democrats were "bound into the Western and transatlantic alliance". "What is still available will absolutely still be delivered." He was referring to artillery munitions and anti-tank weapons. Meanwhile, Foreign Minister Annalena Baerbock said, "There are no taboos for us with regard to armoured vehicles and other weaponry that Ukraine needs." (With inputs from agencies)

Russian gas embargo will cost Germany almost $190 billion, says Bundesbank

The German economy could have continued to shrink over the summer as industrial production drops amid a dearth of orders, the Bundesbank said on Monday, suggesting that the <a href="https://www.wionews.com/business-economy/global-markets-yen-and-bond-bulls-charge-on-as-share-markets-falter-242412">euro zone's biggest economy is now in a recession</a>.

German growth contracted in the second quarter on slumping exports as a global trade war, China's slowdown and Brexit uncertainty sapped confidence, dealing a blow to an export-focused economy.

"Overall economic performance could again decline slightly," the Bundesbank said in a monthly report.

"The main reason for this is the continuing downturn in the industry," the central bank said, pointing to a significant decline in orders and a big drop in sentiment indicators for manufacturing firms.

While domestic consumption continues to isolate the economy, the jobs market is already showing signs of weakness and confidence in the services sector is also dropping, the Bundesbank added.

Still, the construction boom is likely to continue, providing some support.

While Germany has so far rejected the idea of boosting public spending to offset the slowdown, Finance Minister Olaf Scholz said that Berlin has the financial strength to counter any future economic crisis "with full force".

Speaking on Sunday, Scholz said the global financial crisis in 2008/2009 had cost Germany roughly 50 billion euros and the government could again muster such a sum, if necessary.

Obsessed with running a balanced budget, Germany has produced surpluses for years, ignoring calls for more spending to boost growth.

The German economy could have continued to shrink over the summer as industrial production drops amid a dearth of orders, the Bundesbank said on Monday, suggesting that the euro zone's biggest economy is now in a recession.

The German economy could have continued to shrink over the summer as industrial production drops amid a dearth of orders, the Bundesbank said on Monday, suggesting that the euro zone's biggest economy is now in a recession. German growth contracted in the second quarter on slumping exports as a global trade war, China's slowdown and Brexit uncertainty sapped confidence, dealing a blow to an export-focused economy. "Overall economic performance could again decline slightly," the Bundesbank said in a monthly report. "The main reason for this is the continuing downturn in the industry," the central bank said, pointing to a significant decline in orders and a big drop in sentiment indicators for manufacturing firms. While domestic consumption continues to isolate the economy, the jobs market is already showing signs of weakness and confidence in the services sector is also dropping, the Bundesbank added. Still, the construction boom is likely to continue, providing some support. While Germany has so far rejected the idea of boosting public spending to offset the slowdown, Finance Minister Olaf Scholz said that Berlin has the financial strength to counter any future economic crisis "with full force". Speaking on Sunday, Scholz said the global financial crisis in 2008/2009 had cost Germany roughly 50 billion euros and the government could again muster such a sum, if necessary. Obsessed with running a balanced budget, Germany has produced surpluses for years, ignoring calls for more spending to boost growth.

German economy could continue to shrink: Bundesbank

Germany issued a &nbsp;ten-year bond at a negative interest for the first time today, selling more than 4.0 billion Euros ($4.5 billion) with a yield of minus 0.05 per cent, the German central bank or Bundesbank said.&nbsp; 
 
The &nbsp;ten-year German government bond or &quot;Bund&quot; acts as a benchmark on the debt markets and regarded as one of the safest investments. 
 
It is the first time that investors have accepted negative returns in the first issue of a bond, meaning they will pay for the privilege of owning rock-solid German bonds amid fears about the consequences of the British vote to quit the European union and economic worries.&nbsp; 
 
While borrowers traditionally pay interest on the money they are loaned, in the face of heightened political and economic uncertainty, those interest rates have come down to record lows recently as investors flock to safe havens to park their cash. 
 
By accepting negative yields, investors are effectively ditching any hope of a return on their investment in what seems a reasonable price to pay to escape the uncertainties of falling stock markets or volatile commodities and currencies. 
 
Interest rates on sovereign debt have been low for some time as central banks snap up government bonds from investors in an effort to boost economic growth through increased liquidity. 
 
The European Central Bank has slashed its key interest rates to zero and launched a massive bond-buying programme known as quantitative easing (QE) in a bid to get the eurozone economy back on its feet and push inflation higher. 
 
Germany is just one of three countries in the euro area and six in the European Union to enjoy a top-notch triple-A rating on its sovereign debt.&nbsp; 
 
(AFP)

The bond or 'Bund' acts as a benchmark on the debt markets and regarded as one of the safest investments

Germany issued a ten-year bond at a negative interest for the first time today, selling more than 4.0 billion Euros ($4.5 billion) with a yield of minus 0.05 per cent, the German central bank or Bundesbank said. The ten-year German government bond or "Bund" acts as a benchmark on the debt markets and regarded as one of the safest investments. It is the first time that investors have accepted negative returns in the first issue of a bond, meaning they will pay for the privilege of owning rock-solid German bonds amid fears about the consequences of the British vote to quit the European union and economic worries. While borrowers traditionally pay interest on the money they are loaned, in the face of heightened political and economic uncertainty, those interest rates have come down to record lows recently as investors flock to safe havens to park their cash. By accepting negative yields, investors are effectively ditching any hope of a return on their investment in what seems a reasonable price to pay to escape the uncertainties of falling stock markets or volatile commodities and currencies. Interest rates on sovereign debt have been low for some time as central banks snap up government bonds from investors in an effort to boost economic growth through increased liquidity. The European Central Bank has slashed its key interest rates to zero and launched a massive bond-buying programme known as quantitative easing (QE) in a bid to get the eurozone economy back on its feet and push inflation higher. Germany is just one of three countries in the euro area and six in the European Union to enjoy a top-notch triple-A rating on its sovereign debt. (AFP)

Germany issues 10-year bond at negative interest rate for first time

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