After the invasion of Ukraine began in 2022 and large-scale sanctions against Russia were imposed, 70% of Italian companies continued doing business in the country, said Vincenzo Trani, president of the Italo-Russian Chamber of Commerce (IRCC) and founder of Delimobil, in an interview with RBC.
“It was very difficult to make a quick decision, and many Italian companies tried not to make it, but to postpone it. Those who decided to stay adapted to the new reality, trying to manage risks by generating more income,” he stated. According to Trani, every third Italian company present in Russia closed its local branches in 2022. Italian business mainly operated in the agricultural sector, equipment manufacturing, food industry, and automotive industry in Russia.
The decision to leave was mostly made by firms with a small share of turnover in Russia, state-owned companies, or businesses whose products fell under sanctions restrictions, Trani explained. He also noted that companies that left Russia “suffered greatly,” but those that remained “waiting for better times” are now also questioning whether it is worth continuing their presence in Russia.
Trani added that Italian companies, unlike German and French ones, exited Russia on different terms. Most large German companies’ investments in Russia were insured by the state-backed Hermes insurance, which covers business risks in CIS countries, he clarified. Accordingly, they were able to receive state compensation.
“Italian companies left without compensation. The decision to leave the market could have had a terrible effect on investors and partners — that’s why most Italian companies decided to stay,” explained the IRCC head.
On March 27, Italian household appliance manufacturer Ariston became the first Western company to announce a return to Russia — it regained control over its subsidiary, Ariston Thermo Rus. Ariston emphasized that it will continue operating in Russia while complying with current sanctions.
