Italy's SACE withdraws fom Russia, Belarus investments
Italian export credit agency SACE said on March 4 it had temporarily halted assessments of projects in Russia and Belarus due to the deteriorating situation in Ukraine.
The projects under consideration that have been put on hold are valued at €2bn ($2.2bn), according to Reuters, which cited a person with knowledge of the matter. Italy was the sixth biggest exporter to Russia in the first quarter of 2020, thanks mainly to sales in chemicals, pharmaceuticals, mechanics, fashion and home products.
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The agency continues to assess conditions in Russia and Ukraine to offer optimal support for Italian exporters. To that end, SACE has started a crisis plan to monitor developments and bring together various business functions, and will update its position as circumstances evolve.
SACE is the latest European business to scale back its Russian activity in an operation that has shaken Moscow and the Russian economy. Italian banking group Intesa Sanpaolo announced a strategic review of its operations on March 3, while Eni has said it will exit its partnership with Gazprom in the Blue Stream from Russia to Turkey. A number of international oil companies have already announced Russian withdrawals, including BP, Equinor, Shell and ExxonMobil.
Italy is a significant buyer of Russian gas, which accounts for 40% of its imports of the fuel. The country in turn relies on imports to cover 90% of its demand. The government has entered talks with Azerbaijan, Libya and Algeria on getting additional supplies from them. A diplomatic visit by Italy's foreign minister on March 1 to Algeria led to the latter's government providing assurances it could ramp up supply over the coming months.