IMF: Sharp recession awaits Europe if Russian gas stops

Washington-Sana

The International Monetary Fund has warned that the interruption of Russian gas imports could lead to a severe recession in Eastern Europe and Italy, especially if other countries around the world hoard their scarce supplies.

And the British newspaper, Financial Times, quoted the IMF as saying that in the event that liquefied natural gas is not provided while reducing its prices, any Russian action to stop gas supplies to Europe may lead to an economic contraction of more than 5% in the Czech Republic, Hungary, Slovakia and Italy.

For its part, the European Union said today that in the event that Russia cuts gas supplies to the EU countries, the worst scenarios indicate the possibility of a contraction of growth in the region by up to 1.5 percent if the coming winter is cold and the Union is unable to provide suitable alternatives for energy.

According to the European Energy Agency, Austria, Finland and Lithuania depend on nearly 100 percent of Russian gas supplies, while Bulgaria 90 percent, Poland 63 percent, Germany 55 percent and Italy 40 percent.

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