"A return to opportunities: Italian businesses are preparing for the revival of trade with Russia, balancing growth hopes and geopolitical challenges. Discover how companies like Mascheroni from Cabiate are already investing in the future with a new opening in Moscow." Read the exclusive interview.
Towards the Reopening of the Russian Market: First Investments, A Turning PointBusinesses Await the Resumption of Trade, and Mascheroni from Cabiate Opens a Showroom in Moscow
"Penalized by the war, it was our main market area."
The reduction in trade between Italy and Russia during the war has cost 7.8 billion euros, with a 65% drop in exports compared to 2019. Today, expectations are rising for the resumption of exports to Russia: one in three businesses (31%) expects short-term benefits from trade with Russia, with a positive impact on revenue in the event of stabilization in the region. Six out of ten businesses (58%), more cautiously, are betting on a gradual recovery, according to a survey by Promos Italia, the national agency for major market analysis chambers, for 14%.
In the meantime, some have not waited. Already in February, Mascheroni from Cabiate opened a new showroom in Moscow, created in collaboration with Ital-Mond. Located on Smolenskaya, in the heart of the capital's design district, the new space represents a significant step in the brand's distribution strategy in Russia, offering custom-made furniture typically designed for an international clientele. With this opening, Mascheroni consolidates its presence in the Russian market, which, despite a decline in line with other Italian companies, has never fully ceased.
"Some of our Russian clients moved to Dubai during the war, where they continued to operate and make purchases," says Silvio Mascheroni, the company’s owner. "But certainly, the war heavily impacted businesses that had Russia as their primary market for years, including ours. Over time, we have managed to diversify so that we are not solely dependent on one region, and we have also turned to India and the Middle East."
Over the past three years, alternative markets for internationalizing businesses have grown, with around fifty Italian companies operating in the Russian market. Seventy percent of these companies recorded a negative impact due to the consequences of the Russia-Ukraine war, with over 20% experiencing a 50% drop in revenue from their Russian business. Now, a reconciliation would favor construction, food & beverage, and later mechanical engineering and fashion design. The resumption of trade is still hindered by international sanctions, political instability, and a slight decrease in Russian demand for Italian products.
Investments
To support the potential recovery of trade, 32% of businesses believe matchmaking programs are necessary, 30% seek financial and insurance incentives, and 24% advocate for participation in industry fairs. Italian businesses have certainly turned to the European Union, with the internal market growing by 63%, but there has also been an increase in the Middle East (32%), the United States (23%), Southeast Asia (16%), Africa (11%), and China (5%).
A New Phase
"The war between Russia and Ukraine has forced Italian businesses, especially those operating in that area, to rethink their export strategies, accelerating a process of market diversification that is now essential for growth and competitiveness," explained Giovanni Rossi, Director of Promos Italia. "Many businesses reacted quickly, shifting their focus to other geographic areas: 63% targeted the European Union, 32% the Middle East, 23% the United States, and 16% Southeast Asia. Our goal is to support companies in this adaptation process, providing concrete tools to identify new commercial opportunities and reduce dependence on single markets, especially during this highly uncertain geopolitical phase."