Italy’s energy import costs double to 100 billion euros

The cost of energy imports to Italy is likely to double to 100 billion euros, Reuters reported on Saturday, citing the country’s Economy Minister Daniele Franco.

Rome cannot spend unlimited money to cushion the blow to the economy, the minister warned at the annual Ambrosetti business forum. He added that Italy’s high level of debt is limiting its room for maneuver going forward.

According to Franco, the increase of almost 60 billion

The wild surge is likely to wipe out the net surplus in exchanges with the rest of the world Italy has recorded in recent years, the minister said.

“We are shifting a significant part of our purchasing power abroad”, he remarked.

Italy is reportedly dependent on imports for almost 75% of its energy consumption, increasing its vulnerability to the current energy crisis raging across the region. Earlier this year, Italy imported 40% of its gas from Russia, but gas purchases from the sanctions-hit country fell to 25% in July. In doing so, Italy has overtaken Germany in reducing its dependence on Russian gas.

At the end of July, EU members agreed on a plan to reduce their gas consumption by 15% in the coming months. The move aims to increase the block’s energy security by conserving gas for the coming winter amid the growing energy crisis

Earlier, the CEO of the Italian state-owned company Eni, Claudio Descalzi, said the country could survive the winter without Russian gas. He added that Italy’s gas storage facilities were 54% full in June, but should be 70-80% full by October.

On August 31, Eni announced that Gazprom had reduced gas supplies to Italy from 27 million cubic meters to 20 million cubic meters. As of September 2, Gazprom completely halted supplies via the Nord Stream 1 pipeline, citing technical problems.