You're reading: Italian ambassador: Trade, ties rebounding for both nations

Pietro Giovanni Donnici, 57, has served as ambassador of Italy to Ukraine for three years.

During an interview in the Italian Embassy, he discussed the finer points of Italian-Ukrainian relations.

According to WikiLeaks disclosures, American diplomats in cables portray Italian Prime Minister Silvio Berlusconi as a mouthpiece and puppet for Russian Prime Minister Vladimir Putin – a closeness that may be damaging for Italian-Ukrainian relations.

For instance, Berlusconi has actively supported Russia’s South Stream gas pipeline that will bypass Ukraine’s gas transit network.

But Donnici said that bilateral relations between Italy and Ukraine are just fine. He also said that trade is higher than official statistics suggest and ties are close. Here are his views:

Kyiv Post: How would you define the relations of our countries?

Pietro Giovanni Donnici:
We are one of the major trading partners and investors in Ukraine from the European Union.

After seven consecutive years of growth, our bilateral trade reached $7.1 billion, but then plunged 50 percent due to the economic crisis in 2008. Now trade is rebounding, with Ukrainian exports growing.

Ukrainians sell us mostly steel products, metals, and chemicals. As a matter of fact, the two steel mills of Ferriera Valsider andTrametal in Italy are Ukrainian-owned [by Ukrainian billionaire Rinat Akhmetov].

If you look at traditional statistics, where Cyprus and Virgin Islands take the top places, Italy is number 11 with $982 million of investment in Ukraine.

We know, however, the that Unicredit Group alone put here something like $3 billion.

Unicredit being a multinational company, the bank invested through different countries where it has subsidiaries. Our assessment of Italian investment in Ukraine amounts to $4.5 billion.

The biggest investors are Italian banks in Ukraine, with Unicredit owning Ukrsotsbank and Intesa Sanpaolo owning Pravex Bank.

Among small- and medium-sized Italian businesses in Ukraine are companies that manufacture machine tools, intermediate goods, food, textiles and construction materials.

Most of them are green field investments or businesses that were on the verge of collapse.

I just recently visited an Italian company in Sumy that produces corks and exports them to Scotland for a very famous brand of whisky.

The company, however, is Ukrainian-staffed and Ukrainian-run. The Italian investor just comes from time to time to check on the business.

Most of the Italian companies have the same model which keeps Ukrainian workers, Ukrainian banks and Ukrainian tax inspectors happy.

KP: What potential do Italians see in Ukraine?

PD:
First of all they take into account the natural resources –agricultural and mineral resources, the good industrial base and the traditions which have been inherited from the past, as well as professionals and a favorable location in the middle of Europe.

Challenges to the Italian investors are well-known: They want less administrative and tax complications, VAT refunds and easier customs clearance.

Nevertheless, Italians adapt to Ukrainian rules.

KP: How do Italians view the large Ukrainian community in Italy?

PD:
Italians see Ukrainians as people that came to the country to earn honest money and don’t cause any trouble.

According to the lowest estimates, there are at least 400,000 Ukrainians who live in Italy.

Most of them work in families and factories, but some were able to defend their Ukrainian diplomas and became specialists.

Most of them speak the Italian language rather well and blend in easily.

According to our rough estimate, Ukrainians send around 3 billion euros every year to Ukraine to support their families.

It’s through the Ukrainian community that Italians start to learn more about Ukraine, though it is still largely an unknown land for them.

KP: Italy doesn’t have the strongest economy. Why do you think Ukrainians still like to move there?

PD:
The two people do get along well. They share family values.

They also are friendly and easily strike a conversation. I’m sure that Ukrainians also like Italy’s warm climate.

KP: Many Ukrainians complain that the Italian embassy is troublesome in giving visas?

PD:
Look, our refusal rate is not so high – only six percent. In 2010 we issued 54,000 visas to Ukrainians. I don’t think we close any doors.


Italy at a glance


Population:
61 million
National holiday: Republic Day, June 2
Economy: Italy has a diversified industrial economy, which is divided into a developed industrial north and a less-developed, welfare-dependent, agricultural south with high unemployment.
GDP: $1.774 trillion (2010 est.)
GDP – per capita (PPP): $30,500 (2010 est.)
Industries: Tourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics.

Ukraine-Italy relations

Bilateral trade turnover:
$4.5 billion in 2010.
Ukrainian exports to Italy: steel products, metals, chemicals, raw materials.
Italian exports to Ukraine: machine tools, industrial equipment, furniture, textiles, food and beverages.
Italians registered in Ukraine: 500.
Ukrainians living in Italy: 400,000.
Sources: Italian Embassy in Ukraine, CIS fact book

Kyiv Post staff writer Katya Grushenko can be reached at [email protected]