News

11.05.2014

Italian businesses count losses.

Foiled contracts, a lot of  businesses  are  on the verge of closing or have already stopped production. All this  is  the result of the policy of sanctions against Russia, which was imposed from Washington and Brussels.

The exhibition of construction machinery in Verona (Italy)  is usually  calm.  There were no large transactions  into the past three years. Times are difficult, European buyers are reluctant to fork out, and to deal  with clients from Russia are impossible  because of  the threat of European officials in Brussels.

There are more negatives,   than benefits. The construction sector in Italy, as well as the whole economy of the country, is still in crisis. The  significant improvement of  the situation, as acknowledged by the organizers of this international exhibition,  is not observed. Market frozen, and it concerns Russia too. And all  talks about the introduction of European politicians  about economic sanctions against Russian  nervous  the Italian manufacturers, who wish to work in the direction of Russia, even more.

Industrial North of Italy is in the  quarter of its features. Emilia-Romagna, Veneto and Lombardy  are provinces  with the most dense concentration of factories,  they are like a locomotive, the last effort to pull the Italian economy.

The company of  Montovani family used to break for a good deal.  Their equipment for the demolition of old buildings and recycling of concrete waste have been   in use  worldwide  half a century. They have their offices in France and Germany, Bulgaria, and production in China.   They successfully worked in the Russian market  for  the last 10 years, but since the beginning of this year, sales plummeted. They don’t want to hear  about  possible economic sanctions against Russia, because the Italian producers suffer themselves.

"Of course, all this affects our business. Now we have  difficulties in dealing with Russia. There are psychological and  virtual barrier. But we are determined to continue the work. We have already sent another batch of goods and expect that the Russian market ’ll be   a priority for us," - said Vice President of MBI Paolo Montovani. Russian  tricolor at the entrance of the plant is  a clear sign  of  preferences  of the foreign partners to work with. There is a  similar picture: crushing and screening equipment for waste-free processing of the roadway. 50% of the products recently  was took away by  the Russian consumer. The  President of the Company  Danilo Sarti does not hide the disappointment  in the European policy of recent months. The calm  in working with Russia may force it to cut staff by at least a quarter, and then in half.

"I can express my personal opinion and it is similar to what many entrepreneurs  think in Italy. We want to work with Russia. These sanctions, which have not yet introduced, will cause only harm to  all. Politicians should not interfere with the business " - says the president of CAMS Danilo Sarti.

In recent years, trade between Italy and Russia has gone up. Mutual investments amount to hundreds of millions  dollars. The business community here sees Russia as a dynamic market, which can ‘t be found in Europe.

Production of components for the automotive industry is one of the most developed sectors of the Italian economy. Car seats, luggage, plastic products for air conditioners or furnaces. Among the clients  there are Russian automakers. Italian companies do not intend to lose them.

"The difficulties between Russia and Ukraine must be decided by these countries. The intervention  of Brussels officials or the United States does not help the situation. We are closely watching the news, and we hope that this crisis will not spoil our cooperation with Russia," - says commercial director of MPT- Plastic  Stefano Toviani.

Italian producers hopes, that temporary difficulties  could be overcome. Many of them are now actively looking for ways to continue business relations with Russia. After all, business as a bicycle:  stop moving and you ‘ll fall.

 

according to the:  First Channel