Italy is heavily dependent on Russian gas, but has been seeking new sources since Moscow’s invasion of Ukraine as part of an effort to end this reliance in the coming years.
But it remains unclear whether Italy can really end its dependence on Russia for its gas supply – or when this might be feasible.
The government has been seeking new sources since Moscow’s invasion of Ukraine, including with a recent deal to boost supplies from Algeria.
Prime Minister Mario Draghi said last week the country could be independent of Russian gas by the second half of 2024 – the latest in a series of changing estimates.
“Government estimates indicate that we can make ourselves independent from Russian gas in the second half of 2024,” Draghi told the Senate, while adding that the “first effects” of this plan would be felt by the end of this year.
He said his government was also seeking to boost its production of renewable energy, including by “destroying bureaucratic barriers” to investment, saying it was the “only way” to free Italy from having to import fossil fuels.
In April, Italy‘s Ecological Transition Minister Roberto Cingolani estimated the country would no longer need Russian gas within 18 months, following an earlier prediction that it could take until 2025.
Italy is one of Europe’s biggest users and importers of natural gas, importing 90 percent of its gas supply with 45 percent of that coming from Russia – up from 27 percent ten years ago.
Italy now imports 29 billion cubic metres of Russian gas a year, which Cingolani said in March “must be replaced” – but he didn’t specify with what.
Analysts have said there are “a lot of questions” about how helpful Italy’s gas deal with Algeria will be.
Despite its vast natural gas reserves, Algeria is already exporting at close to full capacity.
Draghi repeated his strong support for EU sanctions on Moscow last week, including a proposed ban on imports of Russian oil, although this is currently being blocked by Hungary.
“We must continue to keep up the pressure on Russia through sanctions, because we must bring Moscow to the negotiating table,” he said.
But for now, Italian energy giant Eni says it plans to pay for Russian gas supplies in rubles, meeting a demand from Vladimir Putin.
It was not immediately clear whether the plan would fall foul of European Union sanctions, although Eni said it was “not incompatible”.
The company said its decision to open the accounts was “taken in compliance with the current international sanctions framework” and that Italian authorities had been informed.