San Francisco Frontiers - Putin addresses Italian firms despite Ukraine tensions

The event organised by the Italian-Russian Chamber of Commerce included energy giant Enel, insurer Generali and tyre manufacturer Pirelli. Energy firm Eni told AFP it had decided Tuesday to withdraw.

According to Russian news agencies, Putin hailed Italy as one of Moscow's "main economic partners" -- and amid worries over soaring gas prices, said Russia was a "reliable supplier".

The meeting had been planned in November by the chamber of commerce, which seeks to boost business and investment ties between the eurozone's third-largest economy and Russia.

But it comes just as the United States and other Western powers have warned Moscow of punishing economic sanctions if it moves ahead with what they fear is an imminent invasion of Ukraine.

Italian Prime Minister Mario Draghi's government asked firms in which the Italian state has a stake not to take part in the meeting, according to a source close to one participant.

An Italian government official told AFP: "The meeting is of a private nature and no member of the Italian government will take part."

Italy, which is heavily dependent on Russian gas, has a chronic trade deficit with Russia.

Gas prices have soared this winter, a surge thought to be partly due to a particularly cold winter and a return to economic activity after the pandemic.

But Moscow is also suspected of taking advantage of the tensions on the world market to reduce supply and drive up prices.

"Our country is a reliable supplier of energy to Italian consumers," Putin told the meeting, according to Russian news agencies.

He said Italian energy firms continue to work with Russia's Gazprom on the basis of long-term contracts, "and can currently buy gas at prices well below those of the market".

He added that despite the pandemic and the "volatility" of the global economy, "our countries have managed to maintain economic cooperation at a relatively high level".

Putin also complained that "contacts and business travel are hampered" by the lack of an EU-Russia deal to recognise coronavirus vaccines.

- Doing business -

The Kremlin previously said the meeting would address economic cooperation, notably in the realms of energy, industry, finance and green technologies.

More than 500 Italian companies are active in Russia, according to the Italian-Russian Chamber of Commerce.

Its head, Vincenzo Trani, said in a January 17 statement that the talks were "an opportunity for active dialogue without political rhetoric".

NATO on Monday said it was sending jets and ships to bolster its eastern European flank, as the United States and European Union looked to coordinate a tough response to Russia if it invades Ukraine.

The commerce meeting unfolded even as Italy's defence minister on Wednesday said the country would uphold its NATO commitments, while underlining the need for dialogue with Moscow for a peaceful solution in Ukraine.

Unlike most of its Western neighbours, Italy has historically relatively friendly ties with Putin, backed by strong, long-standing investments by Italian corporations in Russia.

Since becoming prime minister of Italy in February last year, Draghi has stressed that Italy is firmly on the side of the European Union and NATO.

M.Gonzalez--SFF