The Russian gas embargo, the major EU economy will see a sharp decline in GDP

Command Russian gas embargo could lead to severe shortages for Italian industries and services, according to research released over the weekend by the Italian industrialists association Confindustria.

“Blocking gas imports from Russia, Italy’s main supplier in recent years, could have a huge impact on the already weakened Italian economy. Such a shock would cause severe gas shortages for industries and services and further increase energy costs.

The study shows that Italy’s lack of Russian gas will reduce GDP by an average of 2% per year in the period 2022-2023.

Analysts warn that, after Italy’s economic growth fell by 0.2% in the first quarter of 2022, “Italy’s second-quarter 2022 scenario remains difficult when in conflict. Ukraine continue”.

“Data for April and May confirm a combination of rising commodity prices, lack of supply and high uncertainty. At the same time, a low COVID-19 infection rate could support consumption. Overall, however, this trend remains negative,” the study concluded.

Together with Germany and other European countries, Italy has been working towards reducing its dependence on energy Russia after Moscow launched its military operation in Ukraine in February 2022. The Russia-Ukraine conflict and Western sanctions against Russia put Russian energy supplies at risk globally and push energy prices higher.

Italian Minister of Ecosystem Transformation and Modernization Roberto Chingolani recently stated that Italy can completely refuse to import Russian gas from the second half of 2024.

Today, however, Italy continues to import Russian gas. The southern European country imports 45% of its gas needs from Russia. Last week, Rome was reported to have allowed companies to open accounts with ruble at Gazprombank to comply with Moscow’s requirements for payments in rubles, avoiding supply cuts.