UKRAINE CRISIS MAIN EFFECTS FOR ITALIAN EXPORT TO RUSSIA

Importance of Russian market grew during last years for Italian companies.
Export value is about €11.000.000.000 for year 2013 and it would have been increasing if Ukraine crisis didn’t break balance of power between European Union and Russia.
President Putin decided to support separatist rebels and so Brussels started applying sanctions against Russian key economic sectors.

Italy-Russia

As a consequence, Moscow answered using the same strategy: a black-list containing EU Countries, among which Italy, who have no permission to sell their products/services to Russia.

Which are the main effects for Italian export now?

• A decreasing trend for export to Russia due to both embargo and sanctions.
Research highlights that Italy lost business opportunities for about €132.000.000 during the sole month of August 2014.

• Legislative Decree signed by President Putin on August 6th 2014 damaged agricultural and food: vegetables and fruits ready to be delivered were been rejected by Russian customs and this situation caused a great loss of production, time, money and human resources.

• In order to avoid embargo, many Russian companies established “satellite enterprises” into Countries which are not included in black-list.
This method inspired Italian companies to sell in other Countries using a triangulation transaction.
For example, Italy exports fruits to Serbia and Serbia resells products to Russia.

This situation is creating uncertainty and ambiguity concerning future business relations and so choosing a professional partner who provides services for internationalization is a urgent and essential need.