Russia, Ukraine, gas and more. Here is the Draghi-thought

20 May 20222 years ago babelfish

The briefing by the Prime Minister, Mario Draghi, in the Senate on the recent developments of the conflict between Russia and Ukraine.

Mister President,
Honorable Senators and Senators,

Today's report intends to deepen the main aspects related to the war in Ukraine.
In particular, I will focus on the military situation on the ground;
on the consequences of the conflict from a humanitarian, food and energy point of view;
on the Italian effort to support Ukraine;
on sanctions against the Russian Federation;
on the ongoing negotiation initiatives;
on the government's action on the diversification of energy supplies and food aid to the most exposed countries.

The war in Ukraine has reached its 85th day.
The hope on the part of the Russian army to conquer large areas of the country in a short time has met with strong resistance from the Ukrainian people.
The Russian Federation withdrew from large portions of Ukrainian territory to concentrate its forces in the eastern part of the country.
Here too, the Russian advance proceeds much slower than expected.
In the past week, Ukrainian forces have regained control of Kharkiv in the east of the country, the second largest city by population in Ukraine.
The Ukrainian army has so far rejected attempts by the Russian side to cross the Seversky Donets River, and thus to encircle Severodonetsk – about 100 kilometers northwest of Lugansk.

In southeastern Ukraine, the Russian offensive has turned into a military occupation.
In Kherson, Russian forces left the garrison of the area to the Russian National Guard.
On May 1, the city adopted the Russian ruble and hooked up to the Russian telecommunications network Rostelecom – a sign of Russia's progressive entrenchment in the area.
Russian aviation activity and missile launches continue on Mariupol and in the Donbass area.
According to the Ukrainian General Staff, the Russian forces are trying to annex new territories in the Donetsk and Lugansk oblasts.

The cost of the Russian invasion in terms of human lives is terrible.
Reconstructions with satellite images have identified 9,000 bodies in four mass graves around the city of Mariupol.
Mass graves were found in Kiev last week after those discovered in other places liberated from Russian occupation, such as Bucha and Borodyanka.
Italy has offered its support to the Ukrainian government to investigate possible war crimes.
In this context, our Embassy has however resumed its activities in Kiev.
Once again I thank Ambassador Zazo and all the staff of the Embassy for the spirit of service, professionalism and great courage shown.

As of May 3, the number of internally displaced people has reached 7.7 million.
According to the United Nations High Commissioner for Refugees, around 6 million people – mostly women and children – have left Ukraine for neighboring countries since the start of hostilities.
If you add these two figures together, nearly 14 million Ukrainian residents have had to leave their homes – nearly one in three citizens.
Over 116,000 Ukrainians arrived in Italy – including 4,000 unaccompanied minors.
So far we have placed about 22,792 Ukrainian students in Italian schools.
Most – nearly 11,000 – are primary school girls and boys.
I would like to thank Minister Bianchi, the school staff and all the Italian girls and boys for this wonderful manifestation of love and collective efficiency.
I also want to thank the Civil Protection, third sector entities and all Italian citizens who are committed to welcoming refugees.
Italy is proud of you – of your welcome, of your solidarity, of your humanity.

The humanitarian crisis caused by the Russian invasion risks adding a food crisis.
Russia and Ukraine are among the main suppliers of cereals globally.
Alone, they are responsible for more than 25% of global grain exports.
26 countries depend on them for more than half of their needs.
The devastation of the war has affected the production capacity of large areas of Ukraine.
Added to this is the blockade by the Russian army of millions of tons of cereals in the Ukrainian ports of the Black and Azov seas.
The war in Ukraine threatens the food security of millions of people, also because it adds to the criticalities that have already emerged during the pandemic.
The food price index rose during 2021 and reached an all-time high in March.
The reduction in cereal supplies and the consequent increase in prices risks having disastrous effects in particular for some countries in Africa and the Middle East, where the danger of humanitarian, political and social crises is growing.

The war also had significant effects on the energy market, increasing uncertainty.
Prices were already very high even before the war, but uncertainty has certainly increased.
Due to the technical difficulties linked to the conflict, the flow of Russian gas to Europe through the Sokhranivka pipeline was interrupted, through which about a third of the total passes.
However, prices remain at very high levels compared to historical values and are subject to strong volatility.

Since the beginning of the invasion, the government has moved with conviction to support Ukraine.
We have allocated over 800 million euros in assistance for refugees.
About 300 million are part of the latest Aid Decree.
We strengthen refugee reception capacity and provide refugees with access to public health care.
We are a hospitable country: we are showing it and we intend to continue to do so.

Italy has also allocated 110 million euros in grants to the general budget of the Ukrainian government for the management of the emergency – in addition to up to 200 million in loans.
We are funding the activities of various international organizations active in Ukraine and neighboring countries with 26 million euros.
Within the framework of the European Civil Protection Mechanism, a humanitarian transport of about 20 tons of humanitarian materials of the Italian Cooperation was organized.
The National Civil Protection Service donated goods such as camp beds, tents, medicines and medical equipment to Ukraine, and also offered assistance to Slovakia and Moldova.

To prevent the humanitarian crisis from continuing to worsen, we must reach a ceasefire as soon as possible and restart the negotiations vigorously.
It is Italy's position and it is a European aspiration that I shared with President Biden and the political leaders of Congress during my recent visit to Washington.
In these meetings I found universal appreciation for the solidity of the Italian position, firmly anchored in the transatlantic field and in the European Union.
This position allows us to be at the forefront, with credibility and without ambiguity, in the search for peace.
From this point of view, Pentagon Chief Austin's conversation with Russian Defense Minister Shoigu, which took place on May 13, is an encouraging sign.
This is the first phone call since the start of the war.

Yesterday, the Russian Federation communicated the expulsion of 24 Italian diplomats to our Ambassador in Moscow.
It is a hostile act, which follows similar decisions taken against other European countries and which responds to the expulsions of Russian diplomats by Italy and other EU member states.
However, it is essential to maintain dialogue channels with the Russian Federation.
It is only from these channels that a negotiated solution can emerge.

Italy will act bilaterally and together with European partners and allies to seek every possible opportunity for mediation.
But it will have to be Ukraine, and no one else, to decide which peace to accept. Also because a peace that was not acceptable by Ukraine would not even be sustainable.
The European Council will be held at the end of June, in which we will also address the question of Ukraine's accession to the European Union.
As I have already said in Parliament, Italy is in favor of Ukraine's entry into the European Union.
In early July, I will be in Ankara for the bilateral summit with Turkey – the first of its kind in 10 years.
In this meeting we will discuss the negotiation and diplomatic perspectives of the conflict, and the strengthening of relations between Italy and Turkey.
If today we can speak of an attempt at dialogue it is thanks to the fact that Ukraine has managed to defend itself in these months of war.
Italy will continue to support the Ukrainian government in its efforts to repel the Russian invasion.
We will do this in close coordination with our European partners.
It is not only the solidity of the transatlantic link that is at stake, but also loyalty to the European Union.
The Government has reported on the matter several times to the Parliamentary Committee for the Security of the Republic, which has always found the consistency of the support offered with respect to the indications and guidelines of the Parliament.

At the same time, we must continue to keep the pressure on Russia high through sanctions, because we must bring Moscow to the negotiating table.
The restrictive measures approved so far by the European Union and the G7 have already had a significant impact on the Russian economy, which will be even stronger in the coming months.
According to the forecasts of the International Monetary Fund, the Russian gross domestic product will drop by 8.5% this year, and the inflation rate will reach 21.3%.
The MOEX index of the Moscow Exchange has lost a third of its value since mid-February, before the invasion.
To curb capital flight, the Russian Central Bank has raised interest rates, which are now 14%, and introduced controls on capital movements.
The European Union is working on a sixth package of sanctions, which Italy supports with conviction.
The list of interventions includes measures related to oil, restrictions for some financial institutions, the expansion of the list of sanctioned individuals.

The deterrent activity against Russia also includes the intensification of the operations of the Atlantic Alliance.
The Supreme Allied Commander has reinforced the level of response along the eastern flank – an effort to which Italy contributes 2,500 units.
In the medium term, we are ready to further strengthen our contribution in Hungary and Bulgaria, with 250 and 750 respectively, in line with the action of our allies.
Finally, we evaluate the possibility of supporting Romania in maritime demining activities in the Black Sea and Slovakia in anti-air defense.
The growing Russian threat has prompted Sweden and Finland to apply to join NATO.
Italy strongly supports this request, as I had the opportunity to say yesterday to the Finnish Premier Sanna Marin during our bilateral meeting.
It is necessary to support NATO with a genuine common European defense, complementary to the Atlantic Alliance.
The first step must be the rationalization of military spending in Europe, the distribution of which is inefficient.
In my recent speech at the European Parliament in Strasbourg, I launched the proposal for a European conference with the aim of initiating coordination for our investments in security.

Improving our defense capabilities is not enough to build lasting peace, peaceful coexistence.
As President Mattarella said, in the long run it will also take a "creative effort" to arrive at an international conference modeled on the 1975 Helsinki Accords.
Once the ceasefire is achieved and the negotiations between Kiev and Moscow concluded, a "respectful and shared international framework" will need to be built, to use his words.
This conference must have the objective, as it was for Helsinki, of bringing together countries that are distant today and making the process of detente lasting.
Among the principles of Helsinki were respect for the right to self-determination of peoples, the non-recourse to the threat or use of force against the territorial integrity and political independence of any state.
These are values with which Italy fully identifies and which we want to see at the center of the life of the European continent and of the world.

The government intends to continue its efforts to tackle the other crises deriving from or aggravated by the war in Ukraine.
The conflict has highlighted the fragility of energy policy in recent years and made the need to diversify our suppliers even more evident.
We moved quickly to reduce the share of natural gas we import from Russia, which was around 40% of the total in 2021.

Our goal is not only to increase the supplies of natural gas we need as a transition fuel, and I insist on transition, but also to invest in these same countries to increase the production of renewable energy.
The agreement we signed in April with Algeria, for example, provides for support for the development of renewable energy and innovative low-carbon technologies;
it also provides for the development of electricity transmission network projects in Algeria and electricity interconnection between Algeria and Italy.

The government then moved with the utmost determination to eliminate the bureaucratic constraints that limit the expansion of renewables in Italy.
Renewable energy remains the only way to free ourselves from fossil fuel imports, and to achieve a truly, truly sustainable growth model.
The Government will continue in every effort to make these investments faster, to dismantle, to destroy the bureaucratic barriers that prevent investments. Today they are just those.
Government estimates indicate that we will be able to become independent from Russian gas in the second half of 2024.
The first effects of this process will already be seen at the end of 2022.
During my visit to Washington, I shared the Italian energy strategy with President Biden.
We agreed on the importance of preserving climate goals – a commitment that Italy intends to keep.

The government has taken very substantial measures to protect businesses and households from rising energy prices.
The measures amount to around 30 billion euros for this year alone, to mitigate fuel price increases and reduce bills.
We have dedicated our aid above all to the most vulnerable sections of the population, in particular low-income families;
and we have helped the most troubled manufacturing sectors, such as energy-intensive businesses.
It is now important that structural solutions are found at European level, which overcome the distortions present in the energy markets.
The European Commission yesterday presented the RepowerEU plan, which will be the focus of the next extraordinary European Council.
We need immediate and courageous responses to alleviate the impact of the crisis on our economies.

We must also act with the utmost urgency to prevent the conflict in Ukraine from causing food crises.
During my recent visit to the United States, I discussed with President Biden the urgency of coordinated action – an issue also raised by the German G7 presidency.
I asked the President for support for an initiative shared by all parties that would immediately release the millions of tons of wheat blocked in the ports of southern Ukraine.
In other words, the ships carrying this grain need to be allowed to pass and if the ports have been – as they say – mined by the Ukrainian army, they must be cleared for this purpose.
All the parties involved should now open a parenthesis of collaboration to avoid a humanitarian crisis that would kill millions and millions of people in the poorest part of the world.

Italy has promoted a Ministerial Dialogue with the Mediterranean countries in collaboration with the FAO, to outline the intervention measures for the region.
Similar initiatives have been taken by France, Germany and the United States. But perhaps the most urgent thing is to do what I said before.

Finally, I want to thank Parliament – the majority and also the main opposition force – for the support you have given to the Government in dealing with this crisis.
The resolution, approved by a very large majority, which committed the Government, among other things, to:
support Ukraine from a humanitarian, financial and military point of view;
to keep the pressure on Russia high, including through sanctions;
to seek a negotiated solution;
he guided the government's action very clearly and strengthened our position at the international level.
The Government intends to continue to move in the wake of this resolution.
Thanks.

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/russia-ucraina-gas-e-non-solo-ecco-il-draghi-pensiero/ on Thu, 19 May 2022 10:13:11 +0000.