An embargo on Russian gas could lead to a serious shortage of fuel crucial for Italy’s industrial and service sectors, according to a study published on Saturday by the association of Italian industrialists Confindustria.
“A possible blocking of natural gas imports from Russia, Italy’s main supplier in recent years, could have a very strong impact on the already weakened Italian economy. Such a shock would cause a serious shortage of gas volumes for industry and services and an additional increase in energy costs,” the analysts behind the study state.
The study claims that Italy being deprived of Russian gas would knock an average of 2% per year off of GDP in 2022-2023.
Analysts warn that after a drop in economic growth by 0.2% in the first quarter, “in the second quarter of 2022 the scenario for Italy remains difficult due to the continuation of the conflict in Ukraine.”