Production Localization as a Foreign Exchange Risk Management Strategy Used by Italian Oil and Mechanical Firms in Times of Sanctions

The purpose of this paper is to describe the strategies that Italian companies operating in the oil and metalworking sector have adopted in the face of the situation created by the sanctions. In particular, the emphasis will be placed on companies that following the collapse of the ruble and, subsequently, of the purchasing power of Russian customers, have seen their products losing competitiveness and, consequently, had to act by making strategic choices such as localizing their production in the Russian Federation. The issue of localization of production in Russia is very discussed at the media level but at the academic level lacks organic work. This thesis is the first to describe the strategies of localization of Italian companies in the oil and mechanical sector in Russia. In the thesis, there will be classification, descriptive and quantitative methods in order to show the strategies that Italian oil and mechanical companies adopted to localize their production in Russia.