Stopping energy imports from Russia could cost Germany up to 3% of its gross domestic product (GDP) in the short term, simulation-based estimates from EconPol Europe's network showed.

The costs of stopping energy imports will be significant, given that the coronavirus pandemic has cost about 4.5% of economic production, said Andreas Peichl, head of the Ifo Center for Macroeconomics and Research, according to Reuters.

He added that larger economic downturns and shocks cannot be ruled out as the magnitude of the potential shock entails a high level of uncertainty.

In addition, according to him, it must be taken into account that a significant part of the industry has not yet recovered from the effects of the pandemic.

Oil and coal could be replaced by imports from other countries, but gas will not be so easy, the authors write.

Germany should quickly and decisively reduce its dependence on Russian gas, said Karen Pittel, head of the Ifo Center for Energy, Climate and Resources.

Above all, she said, policies should aim to increase incentives to replace and conserve fossil fuels as soon as possible, even if an embargo is not imminent.