Italy and Ukraine to Team Up on Indian Logistic Corridor?

On Sept. 9, 2023, at the G20 New Delhi summit, the India-Middle East-Europe-Economic-Corridor (IMEC) was presented and a memorandum of understanding was signed by India, the United Arab Emirates, Saudi Arabia, Israel, Italy, Germany, France, the United States and the European Union.

Notwithstanding the strategic role played by Ukrainian ports in the Black and Mediterranean Seas, Ukraine is not among the signatories. But Italy can play a decisive role in getting Ukraine with its ports into the IMEC.

The corridor starts from Indian ports (Mundra, JNPT Nhava Sheva, Kandla, Vadhavan) and reaches Dubai. Then, continues overland through Saudi Arabia, Jordan and Israel, up to the Israel’s port of Haifa. From there, it sails toward Greek, French and Italian ports. Odesa is not on the corridor’s map, even though it is an unavoidable connection for the Black Sea.

The Israel-Hamas War, which started in October 2023, froze work on the IMEC. However, the recent opening of negotiations between Israel and Hamas restarted construction on the corridor.

Vas Shenoy, the Chief Representative for Italy of the Indian Chamber of Commerce, plays the role of business bridge between Italy and India for business and is an active promoter of IMEC. He says: “India has been expanding its diplomatic and economic engagement with Central and Eastern Europe. The recent opening of resident embassies in Estonia (2021), Lithuania (2023), and Latvia (2023) demonstrates India’s growing interest in the Baltic region. Additionally, India has maintained historically strong relations with Hungary, Poland, and the Czech Republic, strengthening them further in recent years. Prime Minister Modi’s visit to Poland and Ukraine in 2024 marked a historic milestone – being the first visit by an Indian Prime Minister to Poland in 45 years and the first-ever visit to Ukraine since the establishment of diplomatic relations in 1991.”

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If India’s strategy is aimed to strengthen its connection with Central and Eastern Europe, the most important Mediterranean port with historical strong relations with those countries appears to be Trieste. “In this evolving geopolitical landscape, Trieste is poised to become a crucial hub for Indian trade into Central and Eastern Europe, reinforcing IMEC’s importance and positioning India at the center of a dynamic trade network,” confirms Shenoy, who has been working for some years in the Trieste region.

“The Italian port of Trieste… has long been considered the endpoint of the ancient Silk Road and a maritime rival to Venice… Nowadays, despite the elimination of borders within the European Union, it remains a strategic harbor for connecting the European continent with the Asian and African ones.”

Giulio Terzi di Sant’Agata, President of the Italian Senate’s Commission on EU policies and former Italian Minister of Foreign Affairs, believes the project offers Italy a unique opportunity. “The IMEC is an ambitious rail and shipping network linking India and Europe via Haifa, while bypassing the Suez Canal and Bab el Mandeb. Though its progress has been delayed due to the Hamas terrorist attack on Israel on Oct. 7, 2023, interest in establishing a strong EU final destination of IMEC remains.”

But Italy has also other big ports like Genoa and Naples. Why Trieste? Terzi di Sant’Agata responds: “Trieste is strategically positioned for IMEC as it provides a direct route into the industrial heart of Europe. Its marine terminal already facilitates cargo transportation by rail to Austria, Germany, the Czech Republic, Hungary, Slovakia, and Italy’s own industrial centers. Additionally, its road connections to Slovenia and Croatia offer unmatched logistical advantages over Greek and French ports. Furthermore, Italy’s strong diplomatic ties with Israel pave the way for seamless collaboration between Haifa and Trieste, forming a crucial northern segment of the IMEC that capitalizes on existing infrastructure.”

Shenoy says that Ukraine is certainly a strategic country on the Black Sea and points out how it is related to India and the IMEC. “Ukraine is another key player in this equation. India has carefully maintained relations with both Russia and Ukraine… and a diplomatic breakthrough is anticipated under a second Trump administration, which would likely be supported by Prime Minister Modi. Italy, one of Ukraine’s strongest supporters in the EU, is expected to lead reconstruction efforts once the conflict ends.”

But what makes Odesa and Trieste go together in this context? The connection can be found in the foreign investments in the two ports. “Odesa, Ukraine’s primary Black Sea port, is strategically vital for grain and other trade flows between Europe, the Middle East, and India. The German port’s operator HHLA, which owns the Container Terminal Odessa (CTO), also manages operations in Trieste, Hamburg, and Muuga (Estonia), providing a direct link between these key ports,” Terzi di Sant’Agata notes. “Odesa’s revival is intrinsically linked to Trieste’s resurgence… The strategic and economic benefits of this network are clear: a unified trade route connecting India, the Middle East, and Europe in a seamless and efficient manner.”