Italy’s commitment to Ukraine: A partnership for recovery and a sustainable future for Europe

November 28, 2024

Italy has emerged as one of Ukraine's most steadfast partners in its recovery and reconstruction efforts, offering vital support across multiple sectors.

From critical raw materials to energy restoration, cultural preservation and industrial revitalization, Italy's multifaceted initiatives demonstrate a deep commitment to fostering Ukraine's sustainable development, resilience and long-term prosperity.

But this partnership is not one-sided. Ukrainian businesses are increasingly expanding into European markets, creating mutually beneficial opportunities. Projects like Ukrainian mining and metallurgical group Metinvest's planned steel plant in Italy, alongside Italy's patronage of Odesa's reconstruction, showcase how collaboration can benefit both nations economically and culturally, reinforcing their shared commitment to innovation and growth.

Strengthening logistics and raw material supply chains

Italy and Ukraine have entered into a pivotal agreement to deepen cooperation in critical raw material supply chains, focusing on enhancing logistics, attracting investment and fostering innovation. This partnership bolsters Ukraine's access to essential materials while promoting sustainable practices across the value chain. By doing so, Italy is helping to position Ukraine as a key player in Europe's resource landscape while simultaneously addressing global supply chain challenges. And by expanding commercial opportunities and building resilience in this critical sector, Italy is ensuring the stability and competitiveness of both nations in an increasingly interconnected global market.

A €200 million investment in energy system restoration

One of Italy's most impactful commitments is its €200 million investment in restoring Ukraine's war-damaged energy infrastructure. The energy system has been a frequent target of Russian attacks, leaving millions of Ukrainians vulnerable, particularly during the upcoming winter. This funding supports the repair and modernization of Ukraine's energy networks, focusing on renewable energy integration and energy efficiency. By facilitating these advancements, Italy is helping Ukraine rebuild a greener, more sustainable energy system that aligns with European Union climate goals and strengthens the country's ability to withstand future crises.

Ukrainian business expansion: Metinvest's €2.5 billion "green" steel plant in Italy

In a testament to the growing synergy between the two countries, Ukrainian mining and metallurgical group Metinvest has partnered with the Italian government to construct a €2.5 billion green steel plant in the city of Piombino. The initiative, supported by the Italian Ministry of Enterprises, aims to revive Italy's industrial sector while simultaneously benefiting Ukraine's mining industry.

The state-of-the-art plant, scheduled to begin construction in 2025 and production in 2027, will have a capacity of 2.7 million tons of steel annually. The facility will utilize cutting-edge technologies based on electric arc furnaces and secondary raw materials, including scrap, pig iron, and direct reduced iron (DRI) supplied by Ukraine. The project has secured financial backing from the Italian Credit and Export Agency (SACE) and leading banks, including Cassa Depositi e Prestiti, reflecting strong institutional support. Beyond its economic significance, the plant represents a shared commitment to sustainability by producing environmentally friendly "green steel," aligning with EU climate goals.

This partnership highlights how Ukrainian businesses can thrive in European markets, creating jobs and economic growth for host countries while driving demand for Ukrainian exports and expertise. It exemplifies the potential for collaboration to deliver shared benefits, strengthening both Italy's metallurgical industry and Ukraine's mining sector.

Italy's patronage of Odesa's reconstruction

A major highlight of Italy's support is its patronage of the Odesa region's reconstruction, announced in a joint Ukrainian-Italian communiqué. Italy's commitment includes implementing specific reconstruction projects to help the region recover from the devastating consequences of Russian aggression while also preserving Ukraine's cultural and historical legacy.

In a meeting between Ukraine's Ministry for the Development of Communities and Territories and Italian Ambassador Carlo Formosa, priorities for Odesa's reconstruction were outlined. The portfolio of projects with Italy includes:

• Social infrastructure construction: Building schools, hospitals, and community centers to restore essential services in the region.
• Agricultural developments: Reviving the region's agricultural potential to bolster food security and local economies.
• Cultural restoration initiatives: Rebuilding and preserving Odesa's rich cultural heritage, a key pillar of the city's identity and a symbol of resilience, including promoting the inclusion of Odesa's historic center in the UNESCO World Heritage List.

Expanding business cooperation in strategic sectors

Italian businesses have also demonstrated strong interest in deepening collaboration with their Ukrainian counterparts across five strategic industries:

1. Metallurgy and critical materials: Supporting Ukraine's industrial base and ensuring a stable supply of key materials for European industries.
2. Renewable energy sources: Accelerating the transition to clean energy, reducing dependency on fossil fuels and fostering innovation.
3. Defense industry: Enhancing Ukraine's defensive capabilities through cutting-edge technology and expertise.
4. Agro-processing: Bolstering Ukraine's agricultural output and value-added food production to secure global food supplies.
5. Engineering: Driving modernization and infrastructure rebuilding through advanced Italian engineering solutions.

This business collaboration not only enhances economic ties between the two nations but also positions both countries as leaders in innovation and sustainable growth within these critical sectors.

Italy to host the 2025 Ukraine Recovery Conference

In a powerful demonstration of its commitment to Ukraine's future, Italy will host the Ukraine Recovery Conference in 2025. This high-profile event will serve as a platform for mobilizing international support, coordinating reconstruction efforts and attracting private and public investment for Ukraine's recovery.

Italian Foreign Minister Antonio Tajani has emphasized the importance of acting now, stating that investing in Ukraine's reconstruction is essential for ensuring a stable and prosperous Europe. The conference will bring together governments, businesses, and international organizations to align efforts and maximize the impact of ongoing initiatives.

A partnership for resilience and prosperity

Italy's multifaceted support for Ukraine underscores a partnership built on mutual values and shared goals. From critical raw material supply chains to energy system restoration, patronage of Odesa's reconstruction and strategic business collaborations, such as Metinvest's steel plant, this relationship is driving meaningful change for both nations.

As Ukraine grapples with its ongoing challenges of recovery and stability, partnerships such as the partnership with Italy illustrate the potential for mutual growth. Italy's investments and leadership, combined with the ambition and innovation of Ukrainian businesses, lay the foundation for a brighter, more resilient and interconnected future.