The video explores the intricate dynamics of Italy's economic and political dependency on Russia, despite Europe's focus on Germany's reliance. The ongoing war in Ukraine has disrupted these relations, intensifying the impact on Italy due to its historical ties and reliance on Russian energy, which made up a significant portion of its resources. Efforts to diversify energy sources have led to geopolitical shifts, influencing both Italian finance and family livelihoods.

The video further examines Italy's political landscape with Giorgia Meloni's coalition government, which faces a dilemma of maintaining Italian support for Ukraine amidst increasing energy prices and inflation. Key players including Matteo Salvini and Silvio Berlusconi express varying degrees of support for Russia, with Salvini often showcasing open admiration for Putin. These political affiliations complicate Italy's foreign policy decisions and its stance against the Russian invasion.

Main takeaways from the video:

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Key Vocabularies and Common Phrases:

1. dependency [dɪˈpɛndənsi] - (noun) - The condition of relying on something or someone for support or existence. - Synonyms: (reliance, dependence, attachment)

It's amazing how much attention has been placed on Germany's dependency on Russia, but actually Italy follows a close second within the EU.

2. sanctions [ˈsæŋkʃənz] - (noun) - Penalties or coercive measures applied to enforce obedience to laws or rules; often used in international contexts to influence behavior of a country. - Synonyms: (penalties, embargoes, restrictions)

The sanctions regime from the west was incredibly quick, stealthy, and powerful.

3. macroeconomic [ˌmækroʊˌɛkəˈnɒmɪk] - (adjective) - Relating to the large-scale or general economic factors affecting a country or system. - Synonyms: (economic, fiscal, financial)

Post pandemia le previsioni macroeconomic per que blocati.

4. diversified [daɪˈvɜːrsɪfaɪd] - (verb) - To make more varied or diverse; in business, to expand or vary activities to reduce risks. - Synonyms: (varied, expanded, broadened)

Italy also kind of diversified the energy supply by going to northern Africa, making deals with interesting countries like Algeria or Libya.

5. oligarchs [ˈɒlɪɡɑːrks] - (noun) - Very wealthy and influential people, particularly in a government or business, often with political power. - Synonyms: (magnates, tycoons, barons)

Russian oligarchs saw Italy as a relatively welcoming place where they could invest.

6. geopolitical [ˌdʒiːoʊpəˈlɪtɪkəl] - (adjective) - Relating to politics influenced by geographical factors. - Synonyms: (political, strategic, geographical)

It's in a very tricky position, playing this big geopolitical tensions, and it's very much been caught in the middle of all those.

7. symbiotic [ˌsɪmbaɪˈɒtɪk] - (adjective) - Involving interaction between two different organisms or entities where both benefit or are dependent on each other. - Synonyms: (mutualistic, cooperative, supportive)

You can see it's also a symbiotic relationship where a lot of these right wing parties, they know that Russia is out there and might be willing to help them.

8. embarrassed [ɪmˈbærəst] - (adjective) - Feeling or showing self-consciousness, shame, or awkwardness. - Synonyms: (awkward, ashamed, uncomfortable)

Georgia Maloney's government is going to be probably permanently embarrassed by some of the instincts of her coalition partners.

9. nationalist [ˈnæʃənəlɪst] - (noun) - A person with strong identification with and support for their nation, especially to the exclusion of others. - Synonyms: (patriot, loyalist, chauvinist)

And as a nationalist party or leader of a nationalist party, she can see the value in that.

10. isolated [ˈaɪsəˌleɪtɪd] - (adjective) - Far away from other places, buildings, or people; remote. - Synonyms: (secluded, remote, solitary)

Silvio Berlusconichi imagined himself and Italy as this bridge that was going to usher a once isolated Vladimir Putin and Russia into the family of the west.

Italian companies suffer Russia market loss - FT Film

It's amazing how much attention has been placed on Germany's dependency on Russia, but actually Italy follows a close second within the EU. This is a war economy, so we are suffering and has affected substantially the real business with the sanctions and with the energy prices. It raises all kinds of questions about whether Georgia Maloney really will be able to maintain Italy's support for Ukraine and a tough stand against the Russian invasion. Michamo Paolo Amato sono presidente del le ul cati la settima man kelami obiamente abiamo numerosi materiali con preciquendi la logica consequence of wal de prodoti ali tempestique, il fondo ifianchi de la bosa nil febrile del duemira semostati costretti and non poter esportare il nostropodo gran party al mercato Russo con ogetti d'altissimo valore con anche de le characteristice informa e colore e designe. Now, Italy has been caught on the wrong side of this long term investment bet and is having to disentangle itself and is finding it quite hard to do. After the fall of the Soviet Union, Italy benefited enormously from Russia's economic recovery and the rise of a wealthy upper middle class in particular, who seemed to consume Italian goods in vast quantities. Quindinoid dal mille novecento novantase. Novanta Seto. Rice department store the fact that we had a loss of business because of the sanctions has affected the public opinion.

The other effort is the inflation. And then there is a big discussion about inflation. But it's clear that this inflation in Europe is not demand-led, it's supply-led. And the reason why we have an increase in prices is very much related to the increase in energy prices, which is a consequence of the war in Ukraine, because obviously we had to reassess completely our energy sources and move them from Russia to anywhere else, including the US, because now the US is one of the major providers of energy for Europe and for Italy. Italy was the fourth Russian export destination up until 2021. And clearly Italy's energy dependence with Russia has been a big theme throughout the past 20 years. 40% of Italy's gas and most of its coal came from Russia up until the war broke out, and a certain percentage of the oil and the crude that Italy uses as well.

Italy also kind of diversified the energy supply by going to northern Africa, making deals with interesting countries like Algeria or Libya, which I wouldn't say particularly democratic at the moment. But this has had a huge impact on Italian finances and has had a huge impact on Italian families. Post pandemia le previsioni macroeconomic per que blocati. Quin de cuesto estato il prima, la prima bota, la prima, la prima conseguenz. The sanctions regime from the west was incredibly quick, stealthy, and powerful. If you were a business operating in Russia with Russian customers, you probably used one of the western banks quickly. Those relationships were closed. And, you know, a lot of these business people had to look for elsewhere to have their banking services. Even if the war is ongoing and Russia has been sanctioned by the EU, there are companies that continue doing business with Russia.

There are Italian banks that have not shut down their operations in Russia. UniCredit's been in Russia since 2005. At the outbreak of the war, it had about 2 million customers, 70 branches, about 3500 staff. So a pretty big presence in Russia. Among the international banks, it was among the top three with the biggest exposure in Russia. Andrea Orchel, the CEO of UniCredit, has consistently said he doesn't want to leave money on the table. He doesn't want to essentially hand over to their Russian business, to Putin's allies and to the Kremlin. The prospect of selling the business has become much, much harder in the last six months because the Kremlin and Vladimir Putin have actually intervened to basically rubber stamp any sale of a western bank in Russia. And that makes it much harder, because you're essentially having to sell to people who are very closely tied to the Kremlin. That's not something that Unicredit want to do.

And also, really, the Kremlin would be dictating the terms of those sales and would be demanding much lower prices than what the businesses are actually worth at a European banking level. The ECB has openly called on UniCredit and other banks with big Russian presence to really exit as swiftly as they can. There have been private conversations as well. So it's in a very tricky position, playing this big geopolitical tensions, and it's very much been caught in the middle of all those. The coalition is composed by three parties. You have brothers of Italy, Fratelli d'Italia, which is led by Melloni, Giorgio Meloni, and she's also the prime minister and the first female prime minister in Italian history. She got 26% of the vote. So she is leading the coalition, by all means. The junior partners in this government coalition are on one side. Silvio Berlusconi, who is in his eighties and is the leader for Sedalia. And on the other side of the coalition, you have Matteo Salvini, who is actually the leader of the league La Lega.

They have not enough votes even put together to represent a credible alternative to Melloni. Salvini is coming forward to once again make the case that the western strategy of sanctions against Russia and isolating Russia isn't working. Matteo Salvini has made no secret of his admiration for Putin. He's been filmed wearing Putin t-shirts in Red Square, and he wore Putin t-shirts in the EU parliament. And so he is really what some would describe as a Putin fanboy. More than being pro Russians or promoting the grassroots of Salvini's movement, the league are actually pro their own business. And the sanctions is hurting the Italian industrial sector seriously, because both Berlusconi and particularly Salvini are political animals. They know it, so they sense it.

They say that there is a possibility of getting part of the electorate on ending the war in Ukraine and in the sanctions towards Putin and so on. You can see it's also a symbiotic relationship where a lot of these right wing parties, they know that Russia is out there and might be willing to help them. Icon of this world these days. Many voters of the League or brothers of Italy, they actually like Putin. They like him personally. Friedeli Ditalia, the brothers of Italy are, whatever they say, a post fascist movement. The fact that they say that they are not neo fascists or post fascists or they've never been fascists, they have to say it because there is still a clause in the Italian constitution which is anti-fascism, but they actually were fascists. Particularly Miss Melanie, because she was a member of MSI, which is women to social Italian fascist party.

What has been particularly interesting in the last decade or so is how Russia has really latched onto the idea of right wing populist politics in Europe as a very powerful lever of influence. Russia really wants to destabilise the center ground of politics in Europe and to remove from power all of those stable political centrist governments that are better positioned to stand up to Russia. Putin's United Russia party forged political links with all kinds of actors in different parts of the Italian political spectrum. So on one hand, we have Salvini, the leader of the League, who was an unabashed Putin admirer. But we also, elsewhere on the political spectrum, have the Five Star party, which also is believed or suspected to have person to person ties with key people in Russia.

Georgia Maloney's government is going to be probably permanently embarrassed by some of the instincts of her coalition partners. These two men have always liked each other. There's been a close bond between the two, but he has always had a fascination for the Soviets, for Russia, and for Vladimir Putin. They've gone on holiday together, reportedly, and they've always been quite friendly. And this has also translated into closer business ties and economic ties between the two countries. Berlusconi and Putin first met at the G seven in Genoa.

There was an immediate bond between the two. And after that meeting in 2001, there were many phone calls. You have to imagine in 2003, the war in Chechnya. When reporters asked Berlusconi to comment on the atrocities committed by the Russians that were well documented and well known, Berlusconi said, please, let's not spread legends. Legende guardiamo ala realta de fatti, per que sula realta de fatti ques opinion.

Silvio Berlusconichi imagined himself and Italy as this bridge that was going to usher a once isolated Vladimir Putin and Russia into the family of the west. He had all kinds of schemes. When he was talking to Putin, was it on behalf of the Republic of Italy, or was it himself? Where did Juan Berlusconi begin? Or when did the other one end? It was never really clear.

Russian oligarchs saw Italy as a relatively welcoming place where they could invest. Many major oligarchs bought large industrial assets in Italy. They bought mansions and beachside holiday homes. And, of course, all of this was facilitated by the great relationship between Italy's prime minister, Silvio Berlusconi and Russia's Vladimir Putin. We are important as a country for Russia because we are perceived, and at least in part, we are a weak link within the European Union, even in the process, for example, of the sanctioning the Russian oligarchs or the voting motions in the EU parliament.

After World War Two, Italy had the largest communist party in western Europe. Many of the partisans that fought against Mussolini and fascism and on the side of the allies were actually communists. They were members of the Communist Party of Italy, a huge party, many millions of Italians, pledging legends to Moscow and to the communist cause. And that's, of course, hugely important in the strategic equation. Giorgio Maloney, the leader of Brothers of Italy, the far right party, post-fascist party, has had pro-Russian sympathies in the past.

But at this moment, she has taken a pretty firm stance. I think has, in a way, cleverly created a narrative about how a party like hers should be supporting Ukraine. This is a country struggling for national survival. And as a nationalist party or leader of a nationalist party, she can see the value in that. She has been a very strong supporter of the US, of the republican party, and now she knows that in order to stay in power, she cannot push anti EU or anti NATO rhetorics. We are on the side of international law, we are on the side of freedom, and indeed, we are on the side of a proud nation that is teaching the world what it means to fight for freedom.

Partners, and certainly Kiev, should probably rest reasonably assured that Italy will not deviate massively from this path. The issue in Italy is public opinion. It's clearly the softest in this war. Although there is a majority in favor of support for Ukraine, it's the narrowest majority that there is in the EU. And Italians are also more likely than other European countries to pin blame on Kiev, or even on NATO and the west for this conflict. This is irrelevant if you have elections.

However, it becomes less relevant if you do not have elections. And again, even if we did have elections, until when the international coalition is so much favorable to intervention in Ukraine, even for an Italian government who is against it, it would be almost impossible to pull off. Echel Piccolo, Artigiano, Kerabila, Farequista Coze il Russo Lipiacheva, veneer in Italia, Farela Cuisto, artigano fare come volevalui el artigiano, come faso aquila vendezenhe.

Politics, Economics, Innovation, Italy-Russia Relations, Giorgia Meloni, Eu Sanctions, Financial Times