IMF warns Russian gas embargo would lead to severe recessions in eastern Europe and Italy

Washington: International Monetary Fund warned that a Russian gas embargo would lead to severe recessions in eastern Europe and Italy if countries around the world hoarded their own scarce supplies.

The IMF predicted that unless liquid natural gas was shared and prices were artificially held down, any Russian action to stop supplying Europe would trigger economic contractions over the next year in the Czech Republic, Hungary, Slovakia, and Italy.

Agency reported that Russia’s Gazprom had told customers in Europe it could not guarantee gas supplies because of “extraordinary” circumstances, adding to fears that Moscow may not restart the Nord Stream 1 pipeline on Thursday.