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ENERGY

Italy’s prime minister visits Algeria to finalise gas deal

Italian Prime Minister Mario Draghi sealed 15 agreements with Algeria's president on Monday as part of plans to increase gas imports and reduce Italy's reliance on Russian supplies.

Algerian President Abdelmadjid Tebboune shakes hands with Italian PM Mario Draghi (R) prior to their meeting at Chigi Palace, in Rome, on May 26, 2022.
Algerian President Abdelmadjid Tebboune shakes hands with Italian PM Mario Draghi prior to their meeting at Chigi Palace, in Rome, on May 26, 2022. Photo by Andreas SOLARO / AFP.

Draghi was received by President Abdelmadjid Tebboune, and the two went on to sign agreements and memorandums of understanding in areas ranging from
energy to sustainable development, justice and micro-enterprises.

The energy agreement signed on Monday is “a testament to our determination to achieve even more in this domain,” Draghi said, ahead of the expected
signing of an oil and gas supply deal between Algeria and a clutch of companies including Italian energy giant Eni.

READ ALSO: Italy signs gas deal with Algeria to reduce reliance on Russia

“Tomorrow, an important agreement between (US energy firm) Occidental (Petroleum), (Italian energy giant) Eni and (French oil company) Total providing significant volumes of natural gas” to Italy will be signed, Tebboune told reporters at a joint news conference with Draghi.

He was referring to a deal reported on Friday by Algeria’s APS news agency to raise gas deliveries to Italy by an extra four billion cubic metres this year.

Italy buys the majority of its natural gas from abroad, with some 45 percent of its imports historically coming from Russia.

But Rome has increasingly looked to Algeria, historically its second biggest supplier, to reduce that dependence after the war in Ukraine sparked sanctions against Moscow and sent energy prices soaring.

Algeria has therefore supplanted Russia to “become in recent months the biggest supplier of gas” to Italy, Draghi told reporters on Monday.

The two countries also expect to sign accords to bolster judicial, industrial and cultural cooperation, according to Draghi’s office.

According to APS, Algeria was set to furnish Italy with a total of around 20 billion cubic metres of gas in 2022 as a whole, before the latest deal.

Draghi previously visited Algeria in April, when he concluded a deal increasing Algerian deliveries to Italy through the Transmed pipeline by up to nine billion cubic metres per year in 2023-24.

In May, Eni signed a memorandum of understanding with Algeria’s Sonatrach to boost gas exploration in the North African country.

READ ALSO: What does Italy’s Algerian gas deal mean for energy supplies?

The MoU “will allow Sonatrach and Eni to evaluate the gas potential and opportunities for accelerated development at specific fields already discovered by Sonatrach in Algeria”, Eni said at the time.

Algeria is Africa’s biggest gas exporter and supplies around 11 percent of the natural gas consumed in Europe.

The trip could be Draghi’s last state visit: the prime minister attempted to resign on Thursday after the largest party in his coalition government boycotted a key vote.

At the request of President Sergio Mattarella, Draghi agreed to temporarily remain in post. He will address parliament on Wednesday to see whether a resolution can be reached.

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UKRAINE

Italy warns against ‘rash’ moves over arms to Ukraine

Italy's foreign minister on Saturday reiterated his opposition to Ukraine using Italian weapons inside Russia, warning of a "delicate" situation where "rash" moves must be avoided.

Italy warns against 'rash' moves over arms to Ukraine

Support is growing among NATO allies for allowing Ukraine to use Western-donated weapons to strike inside Russian territory – but Rome, a founding member of the alliance, remains opposed.

“It is a very delicate moment, we must not make false steps” and must avoid “rash steps and declarations”, Antonio Tajani told a meeting in Rapallo, northwest Italy, according to the AGI and ANSA news agencies.

He added that “even the US has not authorised the indiscriminate use of its weapons against Russia, but only to strike a base from where the drones depart. They too are very cautious”, AGI reported.

Tajani added that Italy would send another package of aid to Ukraine within “weeks”.

But he repeated that “we will not send even one Italian soldier to fight in Ukraine because we are not at war with Russia”, AGI reported.

Germany said on Friday it had given Ukraine permission to fire German-delivered weapons at targets in Russia.

READ ALSO: Berlin allows Ukraine to fire German weapons at targets in Russia

The day before, US officials said Washington had partially lifted similar restrictions to allow Ukraine to defend its eastern Kharkiv region, which borders Russia.

The change in Washington’s thinking was attributed by US officials to Russia’s daily pounding of Kharkiv, Ukraine’s second biggest city.

Russia fired a combined 100 missiles and drones at Ukraine overnight, in a barrage that targeted energy sites across the country, Ukrainian officials said on Saturday.

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