Direct exports towards Russia and Ukraine mainly impact specific districts and segments, such as: footwear, leather goods and textiles. Stress on raw materials involving jewelry, textiles, and tanning, all while energy prices may further increase based on retaliations by Russians on gas supply. Cirillo Marcolin, president of Confindustria Moda, analyzes the impacts from the war in Ukraine on the fashion chain of Italy. As a solution, he proposes a set maximum price on gas and more incentives to help companies self-produce their electricity.
Helping the districts
“Considering that the Russian market accounts for 2.2% of our exports, our segment is capable of taking the hit – states Marcolin (in photo from Imagoeconomica) to Adnkronos -. Yet, it will be necessary to support the districts most impacted”. Sanctions to Russia don’t find a unanimous opinion when it comes to the segment’s entrepreneurs, while Mr. Marcolin called them “fair and also necessary”.
Some have it worse
With regards to export activities, Marcolin points out that the segments most hit include “footwear first and foremost, along with textiles and leather goods”, for which he asked financial support and a more easily accessible redundancy fund, as it was during the pandemic. Moreover, the conflict also increased the already-present issue tied to the cost of raw materials, “which involves the jewelry, textile and tanning chains the most”. For the former, Ukraine is the 10th top supplier of semi-finished hides for Italian tanneries. “At a time such as this – he explains -, our main competitors outside the EU will have more readily available product when it comes to tanned hides and will gain an advantage from the current conflict. The consequence is a loss of market share by our companies”.
Set maximum price
Last but not least, concerns over the increased price of energy and retaliations by Russia on gas supplies continues to grow. Critical factors that could eat away at the business of those companies at the top of the chain that use a lot of energy. That’s why Marcolin asked the government to “set a maximum price”, as well as a decisive push for a green transition. How? “By implementing solutions that allow companies to make their own electricity in a sustainable and independent manner”.