In a move to boost trade relations between Russia and Italy, the Italian business lobby in Russia is finalizing a payment mechanism that would allow local buyers to make transactions in rubles when purchasing Italian goods. According to Ferdinando Pelazzo, the president of the Italian-Russian Chamber of Commerce, this mechanism is expected to be ready by February 14, 2024.
Pelazzo expressed confidence in the timeline, stating, “We are convinced that on February 14, we will offer the entire mechanism to our board of directors, and from the next day, it will be launched. All we need is to report and get the green light.”
The payment mechanism is designed to cover trade in unsanctioned goods, which are permitted for import into Russia. Pelazzo mentioned that there are some remaining financial issues to resolve, but none significant enough to hinder the mechanism’s readiness by the indicated date.
Explaining the system further, Pelazzo stated that it will enable the lobby to pay for Italian goods in rubles and then transfer the funds to Italy from its account in a third country. The lobby has already chosen an Armenian bank for this purpose, maintaining control over payments and logistics. Pelazzo emphasized the proximity of Armenia to Italy, making it an ideal location to transparently monitor the entire process.
The Italian business lobby has secured permission for the new payment mechanism from the Central Bank of Italy, marking a significant step toward its implementation.
This initiative was first unveiled in July, aiming to introduce a ruble-based payment mechanism for trade in unsanctioned goods, such as wine and clothing. The move comes in response to financial restrictions on Russia imposed by the EU, including the disconnection of its banks from the SWIFT international financial messaging system.
