Industry expert states 70 percent of Italian firms remain in Russia
(MENAFN) Around 70% of Italian companies continue to operate in Russia, while only 30% have exited the market over the past three years, according to Vincenzo Trani, president of the Italian-Russian Chamber of Commerce.
In an interview with Russian business outlet RBK, Trani explained that while many Western, Asian, and European companies exited Russia following the 2022 escalation of the Ukraine conflict and resulting sanctions, most Italian firms hesitated to make swift decisions and ultimately stayed.
“The companies that left were mostly smaller firms, state-owned enterprises, or those directly impacted by sanctions,” Trani said. These businesses reportedly suffered significant losses, while those that remained are still facing operational challenges.
Unlike German and French firms, which often had insurance support through state-backed programs like Germany’s Hermes scheme, Italian companies received no such compensation when withdrawing. “Volkswagen, Mercedes, and BMW had financial cushions. Italian businesses, unfortunately, did not,” Trani noted.
Italian exports to Russia have dropped sharply, from €8–9 billion annually before the conflict to about €4 billion, while exports to the U.S. are also facing new customs duties. Trani added that Italian companies have traditionally felt comfortable in Russia and underestimated the risks of remaining.
Only one Italian firm, appliance maker Ariston, faced external administration measures in Russia. However, the company has since resolved the issue and resumed operations in the country.
Meanwhile, several foreign companies that had exited the Russian market are now registering new trademarks there, indicating a possible return. These include brands such as McDonald’s, Hyundai, Intel, Microsoft, LG, IKEA, Chanel, Rolex, and Louis Vuitton, according to Russia’s patent office, Rospatent.
President Vladimir Putin recently instructed the Russian government to create guidelines for Western firms seeking to return, emphasizing the protection of domestic businesses. He also warned that companies that had “insulted” Russia during their exit may be denied re-entry, though the government would take a pragmatic approach in each case.
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