“Made in Italy” is the world’s most falsified brand name. The same also applies to foodstuffs. “A great deal of contraband is smuggled into Ukraine from Italy,” says Maurizio CARNEVALE, president of the Italian Chamber of Commerce in Ukraine. “Smugglers go to Trieste (the nearest city to the border), buy past-sell-by-date foodstuffs or non-Italian-made goods, and bring them to Ukraine for sale. Moreover, they bribe customs officers and Mafiosi on the border. As a result, the price for these goods goes up. You, Ukrainians, harbor an illusion that it is expensive to pay taxes. Compared to the Italian tax (60 percent), the Ukrainian one (17 percent) is laughable. Moreover, believe me that, with all bribes inclusive, it is far more expensive to bring the goods than if you have paid the taxes. To make it easier to distinguish a contraband item, we are opening FoodItalia, a chain of stores that sell Italian-made certified products. Prices will be the same as in Italy. Incredible as it may seem, this is possible owing to a wages and taxes gap. We are going to open the first wholesale outlet in Lviv. The restaurant or the store that has acquired these products will put up a plaque to this effect. But if the seller does not buy products at FoodItalia, this does not mean smuggling. He can buy from other suppliers, but we bear no responsibility for these products. In my view, the customer remains the best quality controller. So if you see a substandard Italian product on the shelf, immediately phone the police. Does this sound funny? But this is what you should do to change the situation. It is called active citizenship. But, before entering Europe, one must become European. We are soon opening our office in Kyiv. I suggest establishing an association of product quality controllers from among ordinary people, journalists, etc. If you are interested, come please. Italy also has a contraband problem. But we are combating this. The point is we had begun to come across this before you did, and we saw the true cost of these mistakes. We want to explain this to you so that you do not repeat them.”
The Day asked the president of the Italian Chamber of Commerce in Ukraine about different attitudes to business in Ukraine and Italy and whether the number of Italian investors in Ukraine has increased over the past year.
A year ago you told an RBK journalist in Naples that many Ukrainian businesses are of tremendous value, but nobody offers them and, hence, the Italians do not know them. Has the situation changed in the past year? If not, what is the cause?
“There are some important businesses in Ukraine, which can be present in Italy, but they are not presenting themselves. It is true. I must say that, from this angle, Ukrainian and Italian businesses are very much alike – they have a problem of promotion on the international market. The Italian ones have the advantage of being better known in the world. Even in a crisis, they receive more cooperation offers. Ukrainian companies should understand that they must present themselves more actively on the international market.”
Did the number of investors in Ukraine go up after Euro-2012?
“No. Euro-2012 helped more people to know about Ukraine. Entrepreneurs saw that there were possibilities as well as problems. The Italian entrepreneur, who comes over with good intentions, comes across problems. We are trying to solve them. Ukrainian organizations, such as, for example, Derzhinvestproekt, help us in this. They offer us all kinds of support. They recently held a big-scale presentation of Ukraine in Italy. But problems begin when the entrepreneur arrives in Ukraine: he signs a contract but nobody observes it – it turns out to be of no worth.
“The main thing is to hold investors back in Ukraine. For when they see the problems, they tend to go back. This applies even to a taxi driver or a restaurant waiter.
“It is difficult to get an Italian visa, but if you have one, you will be treated like an Italian. It is far easier for Italians to travel to Ukraine. But when we come here, somebody always tries to cheat us. You have a very high educational level, but you should learn social behavior. The world is now deeply interested in Ukraine. And you must catch this train, for if it leaves, it will be difficult to restore your reputation in the future. You must catch the moment right now.”
In what sectors of Italy’s economy would you advise the Ukrainians to invest money?
“In all the sectors, but they are not doing so. They buy Prada handbags and expensive footwear, but they do not invest in the development of their businesses. I annually take part in many Ukrainian forums aimed at attracting foreign investments. I can’t understand it. You are called treasury of Europe because all the liquid assets are in Ukraine. Suffice it to say that Cyprus is the largest investor of funds in Ukraine. Whenever I come to these forums on my car, I feel ashamed because this make is used here by housewives to drive to a supermarket. If you sell all the cars parked during these forums, you can repair all the roads in Kyiv. Why do they invest funds in their car, not in their business, instead of begging for money? It is like a street beggar who wears a Rolex watch. Or take the general level: a woman earning 3,000 hryvnias buys cosmetics instead of milk. It is abnormal, isn’t it? It is consumerism.
“Begin to invest in your future, i.e., in your businesses. Besides, businesspeople should manage their firms by themselves. In Italy, the entrepreneur is one who gets up earlier than others and works until late at night. In Ukraine, it is one who vacations on the Riviera. It is the whole family that runs a pizzeria in Italy. But here the boss quickly appoints somebody else, for he himself does not do business.”
I must say that the new generation is doing business in a different way…
“We are ready to conduct courses on how to do one’s business. We have already turned to a number of universities. But there have been no answers so far. It looks as if everybody would like the situation to remain the same.”
The Italians differ very much from region to region. Does this hinder business cooperation?
“Differences between the Italian regions are far greater than those between Ukrainian oblasts. Italy is in fact composed of the parts that are as diverse as different countries. However, this difference plays into their hands – each region has a particularity which it can show in the most favorable light.”
