‘Their absence will be felt’: Italy fears economic hit as Russians stay away

theguardian.com:

In the window of a tobacco shop in the eastern Tuscan town of Arezzo is a yellow sign with red letters reading “We only accept payment in roubles”.

“It’s just a provocation,” said Anthony Brucato, the shop owner, noting that the same window displayed the blue and yellow flag of Ukraine and a drawing of a dove with a peace flag in its beak. “I want to make people talk about what’s happening. There are a few leaders making decisions that have an impact on millions. This is crazy.”

While Brucato said he was critical of Russia’s invasion of its southern neighbour, he admits his shop window could be seen as showing a mixed message. It’s not alone.

Italy’s government stands squarely with other EU nations in opposing Russia’s war in Ukraine. Italy has imposed sanctions on the Russian economy, stopped dealing with its banks, and called for a negotiated settlement to the conflict.

Opinion polls show that between 80 and 90% of Italians support the government’s stance, according to the polling firm Opinioni, a number that could tick higher as evidence of Russian atrocities in the Ukrainian city of Bucha come to light.

Yet the country continues to rely heavily on the import of Russian gas, though the Italian prime minister, Mario Draghi, flatly refused demands to pay for that gas in roubles – a move in a geopolitical chess game that inspired Brucato’s yellow sign.

Analysts say the absence of Russian imports of Italian goods and of Russian visitors may threaten to derail Italy’s fragile post-pandemic economic recovery. In late March, the Economist Intelligence Unit reduced its economic growth estimates all across the EU but said Italy would be hit the hardest, with growth slowing to 3.4% this year from a previous estimate of 4.4% because