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UKRAINE

Is Italy really pushing to exclude luxury goods sales to Russia from EU sanctions?

As Europe plans further sanctions against Russia following its invasion of Ukraine, reports claim Italy is among the countries asking for exemptions and blocking some tougher measures. But is this true?

Is Italy really pushing to exclude luxury goods sales to Russia from EU sanctions?
Italy's prime minister Mario Draghi has reportedly carved out luxury goods from EU sanctions against Russia. (Photo by Miguel MEDINA / AFP)

EU countries are on Friday planning a third round of economic sanctions against Russia in response to the invasion of Ukraine on Thursday.

Italian Prime Minister Mario Draghi has repeatedly said that Italy is “fully aligned” with its European partners on the issue, pledging a “very tough package of sanctions against Russia” in a speech to the national parliament on Friday.

EXPLAINED: How Italy could be impacted by Russia’s invasion of Ukraine

But Italy may have also been pushing to keep its lucrative trade in luxury goods out of the discussions – at least according to some reports in the UK and US media.

Belgian officials also reportedly wanted an exception for the diamond trade on any list of sanctions.

The UK’s Telegraph newspaper on Friday cited unnamed sources in Brussels as saying Draghi had “carved out” an exclusion for Italian luxury goods from the package.

The Italian government appeared to refute the reports hours later, with a tweet from the Prime Minister’s office in English saying: “Italy has made no requests for carve-outs on sanctions. Italy’s position is fully aligned with the rest of the EU.”

Italy and other European nations were heavily criticised on Thursday for blocking some of the toughest sanctions including a proposal to cut Russia off from the SWIFT international payments system.

Former European Council President Donald Tusk hit out at Italy, Germany, and Hungary on Friday, saying some EU governments had “disgraced themselves” by blocking “tough decisions”.

EU leaders reportedly struggled to unite due to fears about how the sanctions would impact their own economies, with many reliant on Russian gas exports.

This is particularly true for Germany and Italy, the two European countries who import the most Russian gas.

Italy has historically had a closer relationship with Russia than many other European countries, with business relationships reaching beyond energy supply.

OPINION: This is Russia’s war, but we Europeans need to learn fast from our mistakes

There are around 300 Italian companies doing business with Moscow, reports Italy’s Sky TG24 news.

Russia is a major market for Italian luxury fashion  goods, with exports of Italian brands including Moncler, Brunello Cucinelli, Ferragamo and Tod’s worth €1.3 billion in the first 11 months of 2021 alone, according to data from the Italian Trade and Investment Energy Agency.

In the same timeframe, the total trade between Russia and Italy amounted to about €20 billion.

Member comments

  1. Not intelligent! Others will “sanction” Italy’s luxury brands in protest. Net loss to Italy which is otherwise a decent country.

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UKRAINE

Italy warns against ‘rash’ moves over arms to Ukraine

Italy's foreign minister on Saturday reiterated his opposition to Ukraine using Italian weapons inside Russia, warning of a "delicate" situation where "rash" moves must be avoided.

Italy warns against 'rash' moves over arms to Ukraine

Support is growing among NATO allies for allowing Ukraine to use Western-donated weapons to strike inside Russian territory – but Rome, a founding member of the alliance, remains opposed.

“It is a very delicate moment, we must not make false steps” and must avoid “rash steps and declarations”, Antonio Tajani told a meeting in Rapallo, northwest Italy, according to the AGI and ANSA news agencies.

He added that “even the US has not authorised the indiscriminate use of its weapons against Russia, but only to strike a base from where the drones depart. They too are very cautious”, AGI reported.

Tajani added that Italy would send another package of aid to Ukraine within “weeks”.

But he repeated that “we will not send even one Italian soldier to fight in Ukraine because we are not at war with Russia”, AGI reported.

Germany said on Friday it had given Ukraine permission to fire German-delivered weapons at targets in Russia.

READ ALSO: Berlin allows Ukraine to fire German weapons at targets in Russia

The day before, US officials said Washington had partially lifted similar restrictions to allow Ukraine to defend its eastern Kharkiv region, which borders Russia.

The change in Washington’s thinking was attributed by US officials to Russia’s daily pounding of Kharkiv, Ukraine’s second biggest city.

Russia fired a combined 100 missiles and drones at Ukraine overnight, in a barrage that targeted energy sites across the country, Ukrainian officials said on Saturday.

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