German bosses and unions have joined forces to oppose a possible EU ban on Russian gas, saying it would cripple the industry.

Many German figures are calling for an EU-wide ban on Russian gas imports, following that country’s invasion of Ukraine in February.

But German employers and unions said on Monday they oppose such a move, saying it would lead to job losses and factory closures in the EU’s biggest economy.

“A rapid gas embargo would lead to production losses, shutdowns, further deindustrialisation and the long-term loss of jobs in Germany,” said Rainer Dulger, chairman of the BDA employers’ association, and Reiner Hoffmann, chairman of the DGB Trade Union Confederation, in a joint press release on Monday.

They added that while EU sanctions are necessary to put pressure on Russia, they must minimize the impact on those imposing them.

“In the current discussion, we don’t see that,” they said.

EU ministers are currently debating a possible embargo on Russian oil, as Ukrainian leaders say revenue from energy sales is funding Russia’s war effort in Ukraine.

This follows an EU decision in April to ban imports of Russian coal.

Germany – alongside Italy, Hungary and Austria – is highly dependent on Russian energy and has been one of the most reluctant EU member states to sanction gas imports and oil in the country.

As a major manufacturing hub, it has so far resisted calls for an immediate shutdown and said it plans instead to phase out Russian oil by the end of the year and most imports of Russian gas by mid-2024.

Chancellor Olaf Scholz has warned that a sudden Russian gas cut would plunge “all of Europe into a recession”.

Analysts say an EU boycott of Russian energy would drive up energy prices, hurting consumers who are already facing record inflation of 7.5% in the EU.

However, German Economy Minister Robert Habeck said the country had already reduced its dependence on Russian energy since the invasion of Ukraine.

Russian oil imports fell from 35% to 25% and gas imports from 55% to 40%, he said.

Despite widespread economic sanctions against Russian banks and individuals, the EU continues to send around $850 million a day to Russia for oil and gas, even as EU governments condemn the war in Ukraine.

The 27 EU countries get about 40% of their natural gas from Russia and about 25% of their oil.