IMF warns of sharp European economic hit from Russian gas embargo – FT

International Monetary Fund (IMF) warned of heavy damage to the European economy from the Russian gas embargo, the Financial Times reported. 

The IMF said that eastern Europe and Italy would likely suffer serious recessions unless countries managed to pool resources. In case Russia were to stop supplying gas to Europe, the economies of the Czech Republic, Hungary, Slovakia and Italy could contract by more than 5%, the IMF added. 

Market reaction

Investors remain cautious after this headline and the Euro Stoxx Index was last seen losing 0.1% on a daily basis.