Business lobby sees 2% hit on Italy’s GDP if Russia stops gas

The Duomo cathedral and the financial district of Porta Nuova will be seen in Milan, Italy, May 16, 2018. REUTERS / Stefano Rellandini

MILAN, May 29 (Reuters) – Italy’s business lobby Confindustria predicts a nearly 2% hit to the country’s gross domestic product (GDP) on average each year in 2022 and 2023 if there is a cessation of natural gas imports. gas from Russia in June, it said in a research note.

“The cessation of gas imports from Russia could have a very strong impact on Italy’s already weak economy,” Confindustria said, adding that the negative consequences would come from a huge shortage of volumes. of gas for industry and services and further increase in energy costs.

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

After Russia’s invasion of Ukraine, the Italian government sought alternative energy suppliers and its ministers traveled to Africa and the Middle East to secure new contracts.

As part of this effort, Italian energy group Eni (ENI.MI) and Algeria’s Sonatrach on Thursday signed an agreement to accelerate the development of Algeria’s gas and green hydrogen fields.

This move is expected to increase the North African country’s gas exports to Italy by about 3 billion cubic meters (bcm) per year. read more

Reporting by Francesca Landini Editing by Raissa Kasolowsky

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