STRESA, Italy, May 25 (Reuters) - Italian banks must halt their business in Russia as staying in the country implies also a "reputational problem," European Central Bank policymaker Fabio Panetta said on Saturday.

"From there (Russia) you have to get out," Panetta told reporters during the press conference after the end of the G7 finance meeting in Stresa, northern Italy. (Reporting by Giuseppe Fonte Editing by Keith Weir)