The abrupt loss of cheap Russian pipeline gas shattered Germany's heavy industry business model.

German industry relied heavily on cheap, reliable natural gas from Russian pipelines, particularly via Nord Stream. When Russia cut off these supplies in 2022 following the invasion of Ukraine, Germany was forced to buy expensive liquefied natural gas (LNG) from the global market. This sudden change dramatically increased energy costs for energy-intensive sectors like chemicals, steel, and glass manufacturing. As a result, major industrial giants have scaled down their operations at home. Some have begun moving their production facilities to countries with lower energy costs, like the United States or China. This shift is raising serious concerns about permanent deindustrialization in the heart of Europe.