Italy's Economy Minister Warns Of Significant Risks Of Russian Gas Supplies Ban

An embargo on Russian gas supplies to Italy will have a significant impact on the country's economy, Italian Minister of Economy and Finance Daniele Franco said on Wednesday

ROME (UrduPoint News / Sputnik - 27th May, 2022) An embargo on Russian gas supplies to Italy will have a significant impact on the country's economy, Italian Minister of Economy and Finance Daniele Franco said on Wednesday.

The possible consequences of suspending gas supplies from Russia have been assessed as part of Italy's stability plan. The analysis showed that the measure will seriously affect the country and several other EU members in the short term, the minister said at the World Economic Forum (WEF) in Davos.

According to the official, the Italian government has revised downward, to about 3%, the forecasts for this year's economic growth due to the conflict in Ukraine and sanctions on Russia. However, he noted that the Italian economy remains stable and is expected to grow in the absence of external shocks.

At the same time, Franco warned of looming risks to the economy in the current circumstances, pointing to the fact that the current growth is mostly attributed to the past year's trends.

Earlier in the day, speaking at another event at the WEF, Franco said that the country's economy is not in danger of a recession, but there are risks associated with developments in Eastern Europe and rising energy prices.

Earlier this month, European Commission President Ursula von der Leyen presented the sixth package of sanctions against Russia. Among other points, it proposes banning Russian oil imports. The package needs to be unanimously approved by all member states to take effect.