German Chancellor Olaf Scholz and US President Joe Biden during a G7 meeting in Brussels (Reuters)

In a phone call held between US President Joe Biden and German Chancellor Olaf Sholz, the two discussed energy security and Ukraine support, as well as the recent referenda that took place in the Donetsk, LPR, Zaporozhye, and Kherson regions.

The White House press release on the call stated that "President Joseph R. Biden, Jr. spoke today with Chancellor Olaf Scholz of Germany. The leaders reiterated their condemnation of Russia's attempted annexation of Ukrainian territory, as well as their ongoing commitment to providing security and economic assistance to Ukraine."

According to the release, the leaders "also discussed recent developments in global energy markets and the importance of securing sustainable and affordable energy supplies. In addition, they talked about efforts to promote regional stability and prosperity in the Western Balkans."

Earlier in September, German Chancellor Olaf Scholz and Russian President Vladimir Putin held a phone call and discussed Ukraine, energy, and grain deal. During the call, Scholz urged Putin to "come to a diplomatic solution as quickly as possible, based on a ceasefire, a complete withdrawal of Russian forces and respect for the territorial integrity and sovereignty of Ukraine."

According to a Kremlin statement, "Vladimir Putin stressed that Russia has been and remains a reliable supplier of energy resources, fulfilling all its contractual obligations, while interruptions, for example, in the operation of the Nord Stream 1 gas pipeline, are caused by sanctions against Russia that prevent its technical service."

Following the conversation between the heads of state, German left-wing politician and chairman of the Bundestag committee on energy, Klaus Ernst, referenced statements by Chancellor Olaf Scholz that the sanctions should not hit Europe harder than Russia itself, “We have now imposed seven packages of sanctions and Gazprom is making record profits. At the same time, we are threatened with a wave of bankruptcies. Therefore: negotiate with Russia with an open mind."

Check this: Americans are pessimistic more than ever when it comes to US economy

The largest EU economy is anticipated to contract in 2023, as gas and electricity prices continue to skyrocket. According to the Ifo Institute for Economic Research, the Munich-based think tank, the ongoing energy crisis as a result of the war in Ukraine is “wreaking havoc” on the German economy and they project it could lead to a 0.3% drop in GDP next year.

The German government approved on August 4 a €65 billion relief package, which includes continued cheaper public transport and tax breaks for energy-reliant companies, as they have been affected the most by the biggest surge in prices.

The US witnessed a sharp decline in GDP and trillions in economical losses

Citing Federal Reserve data, CNBC reported on September 29 that the steady decline in the New York Stock Exchange (NYSE) that commenced at the beginning of this year annihilated over $9 trillion in investors’ wealth and is expected to continue - already possibly reaching the mark of $10 trillion. "The loss of stock wealth suffered to date, if sustained, will be a small, but meaningful headwind to consumer spending and economic growth in coming months,” said Mark Zandi, chief economist of Moody’s Analytics, in a statement to CNBC.

According to The Washington Post sources, the US economy could be seriously harmed in case Russia completely shuts down oil exports. An economist at Moody's Analytics, Mark Zandi, told the paper that if Russia stops oil exports, gasoline prices would jump over $5 a gallon almost instantly, warning that the US "economy can’t digest $5 a gallon — that would be overwhelming."