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EU sanctions hamper Italian-Russian commercial ties: Putin

Xinhua, June 11, 2015 Adjust font size:

European Union (EU) sanctions against Russia are an obstacle for commercial relations with Italy, Russian President Vladimir Putin said here on Wednesday after meeting Italian Prime Minister Matteo Renzi.

Putin's visit to Milan, where he inaugurated the Russia National Day at the Italian world exposition, came after the EU decided to extend the economic sanctions against Russia, which were due to expire in July, over its stance on Ukraine crisis developments.

"Because of the sanctions, Italian companies cannot earn 1 billion euros (about 1.13 billion U.S. dollars) from the contracts which had been already signed," Putin told a joint press conference. He said the sanctions are an "objective obstacle" for the bilateral commercial relations.

Putin recalled that Italy is the fourth commercial partner of Russia, but "for well-known reasons the trading volume declined by one-tenth in 2014 and by one quarter during the first three months of 2015."

The Russian president said there are over 400 Italian companies in Russia totaling 1.1 billion dollars, while Russian investment in Italy amounts to 2.3 billion dollars.

However the two countries, he said, had to suspend many joint projects due to the sanctions.

"It is necessary to look for a way out of this situation: either you need to cancel the sanctions or offer other instruments if, of course, you want to support your companies," the Russian president added.

"This is an unsatisfactory situation for Russia but I believe also for Italy. Italian entrepreneurs do not want a reduction of commercial exchanges," Putin went on saying.

Earlier this year, the EU said the sanctions would not be lifted unless the Minsk agreement was fully implemented.

The reported violations of the Minsk ceasefire agreement on the Ukraine crisis reached late February cast shadows on the relationship between the EU and Russia.

Pressure was revved up on Russia at this year's Group of Seven (G7) summit which was held on Sunday and Monday in Germany.

"Russia has no relations with the G7, a club of interests," Putin told the press conference. Russia is developing ties with single countries or other organizations, he pointed out.

Russia became the eighth member of the industrialized countries' club called G8 in 1998. The seven countries boycotted the proposed G8 summit scheduled to be held in Sochi of Russia in June last year.

Renzi told the press conference that implementation of the Minsk agreement is the only way out of the Ukraine crisis.

"The true question today is about the Minsk agreement ... Once it is implemented, the phase of tensions, debate and sanctions will be overcome," he said.

"I believe it is an objective truth to say that in such a complex international scenario, Russia must be in the front line along with Europe, along with the United States, along with all people of good will to face the global challenges," Renzi went on saying.

The meeting in Milan between Renzi and Putin was the second this year after the visit of Renzi to Moscow on March 5. Later on Wednesday, Putin will meet Italian President Sergio Mattarella in Rome. Endit