Italian companies in Russia: shedding light on sanctions

Concern and anxiety. These are the feelings that run through the Italian business community in Russia after the temporary nationalisation of Ariston Thermo, which came under Gazprom's management. Few entrepreneurs feel like talking, but with microphones off, many let themselves go with reflections and in some cases real outbursts on the management of relations with Russia.

"The pressure to leave Russia has been strong," says Vittorio Torrembini, president of Gim-Unimpresa, who has been representing Italian companies in Moscow for 35 years and is one of the few who speaks openly. 'Yet,' he continues, 'the companies that have left are few, those that had no choice, the oil and gas and automotive companies, for example. The others, despite a thousand difficulties, have stayed'.

According to the Yale University database, updated as of yesterday, out of 1,028 large companies that have left Russia since the beginning of the conflict, Italians account for 1.4%, about ten. The Americans number about 320, the British about a hundred, the Germans about eighty and the French about forty. Some Italian companies are taking their time to assess the situation, others have reduced their activities or suspended investments. But the exodus of large groups has not taken place. On the contrary, according to Yale, some companies, including Ariston Thermo itself, had continued their activities.

The Italians' attitude, is the reasoning of many entrepreneurs, has been cautious. That is why the nationalisation of Ariston is experienced as a warning. Torrembini speaks of a signal in view of the Italian-led G7. "On the table will be the US request to confiscate Russian assets abroad. But Russian assets in the US are worth about six billion, while those in Europe are worth 280. With Ariston, Putin is sending a signal to Italy on the same ground as the confiscations'.

There are about 350 Italian companies in Russia (there were about 450 before the conflict) of which about a hundred have manufacturing operations. Out of the blue, entrepreneurs point out that Rome has sometimes seemed more realistic than the king. Instead of freezing the oligarchs' assets, says one entrepreneur, Italy seized them. Actions bordering on the provocative have been taken, such as the revocation of honours given to Russian citizens, while Macron has been careful not to take away Putin's Legion of Honour.