MILAN (Reuters). Italy’s business lobby Confindustria predicts a nearly 2% drop in the country’s GDP per annum in 2022, 2023 and 2023 if Russia stops imports in June. This was stated in a research paper.

Confindustria stated that a halt to Russian gas imports could be very damaging for the Italian economy. He added that there would also be negative effects from the shortage of natural gas supplies and increased energy prices.

Russia supplied nearly 40% of Italy’s natural gas imports last year, with 29 billion cubic meters.

The Italian government was forced to seek alternative energy providers after Russia invaded Ukraine. Ministers of the Italian government have traveled to Africa, Middle East and Africa to obtain new contracts.

Eni of Italy and Sonatrach of Algeria have signed an agreement to increase the production of algeria’s gas fields as well as green hydrogen.

The move will increase the North African nation’s exports of gas to Italy by 3 billion cubic metres (bcm), per annum.