2022 – Business lobby expects Italian GDP to fall 2% if Russia cuts off gas By Reuters

© Reuters. The Duomo and the Porta Nuova financial district in Milan, Italy, May 16, 2018. Photo: Stefano Rilandini/Reuters

MILAN (Reuters) – Italian business consortium Confindustria expects the country’s gross domestic product to fall by an average of about 2% annually in 2022 and 2023 if imports from Russia stop in June, according to a research note. He said.

“Stopping gas imports from Russia could have a very strong impact on the already weak Italian economy,” Konfindustria said, adding that the negative consequences would come from a significant shortage of gas volumes for industry and services and an additional increase in energy costs.

Last year, Russia was Italy’s largest supplier of natural gas, supplying Italy with 29 billion cubic meters, or 40% of the country’s total gas imports.

After the Russian invasion of Ukraine, the Italian government was looking for alternative energy suppliers and its ministers traveled to Africa and the Middle East to sign new contracts.

As part of this effort, Italian energy giant Eni and Algeria’s Sonatrach signed Thursday an agreement to accelerate the development of Algeria’s gas and green hydrogen fields.

The move is expected to increase the North African country’s gas exports to Italy by about 3 billion cubic meters annually.

Source site 21