Approximately 70% of Italian companies operating in Russia chose not to exit the country after its invasion of Ukraine in 2022, as stated by the president of the Italian-Russian Chamber of Commerce in an interview with the RBC news website on Wednesday.
Vincenzo Trani, who is also the founder of the car-sharing service Delimobil, explained that many Italian businesses were hesitant to make hasty decisions in the wake of the invasion.
“Those that opted to remain have adapted to the new circumstances, seeking to mitigate risks by increasing their revenues,” Trani remarked.
According to him, Italian businesses in Russia primarily focused on sectors such as agriculture, industrial machinery, food production, and the automotive industry. Companies that exited after the invasion tended to be those with a minimal footprint in the Russian market, state-owned enterprises, or those whose products were directly impacted by sanctions.
“Firms that departed incurred substantial losses, but that chapter has closed for them,” he noted. “The 70% that stayed, with hopes for improvement, are unfortunately facing challenges. Many are questioning if remaining in the market is worthwhile.”
He highlighted that Italian companies find themselves in a different situation compared to their German or French rivals. Most large German firms had their investments in Russia backed by state export credit guarantees, enabling them to seek compensation upon withdrawal.
“Italian businesses left without any safety net,” Trani stated. “Exiting the market could send a harmful signal to investors and partners, which is why most chose to stick around.”
In March, Ariston, an Italian manufacturer of home appliances, emerged as the first Western company to announce its re-entry into the Russian market after President Vladimir Putin reversed the temporary nationalization of its Russian branch.
That same month, the president of the American Chamber of Commerce in Russia indicated plans to urge the U.S. government to relax certain sanctions, particularly those affecting aviation, banking, foreign investment, and luxury goods.
