Russia-Ukraine conflict affects Italian business


Russia's invasion of Ukraine will have serious human consequences. But, the conflict will also have a negative impact on the Italian companies.

The main effects on our companies could derive from restrictions and sanctions that could affect trade exchanges with the two countries. 

Several companies of North-East Italy import from Russia and Ukraine or have production sites in these countries in iron and steel sector, agricultural sector, energy resources (oil and natural gas), machinery, and textiles. 

Gianesini carry out shipping services from and to Russia, both through Full Truck Load transportation (FTL) and Less Than a Truck transportation (LTT), as well as shipments from and to Ukraine

The Ukraine port of Mariupol has ceased operations compromising also the productivity of Italian factories and steel mills. In addition, Italian exports to Russia has not yet returned to pre-pandemic levels in all sectors and it could suffer another economic slowdown. Exports from the Veneto region of Italy to Russia and Ukraine in 2020 was over 1.2 billion euros to Moscow and 304 million to Kiev. The war could also affect Veneto region foreign business with economic consequences. 

In addition to the trade challenges with the two countries, the war could increase prices of raw materials and energy. Russia-Ukraine conflict could drive up energy costs, which are already impacting Italian companies, in a general context of increase in inflation.