Sanctions and Prospects of the German Business in Russia

The budget deficit that arose due to non-payment of contributions by Russia became the main issue for discussions at the spring session of the Parliamentary Assembly of the Council of Europe in early April. Russia's contribution of 30 million euros each year, or 7% of the total budget of the PACE, is the amount through which, in Europe, not only did they reflect on the role and mission of the PACE and began to discuss the right to impose sanctions on the Russian Federation, but also were ready to abandon European values ​​and democratic freedoms. Russia's return to the PACE and the lifting of sanctions were lobbied by Germany and according to some information personally by Angela Merkel. 

 

by Oksana Ishchuk 

 

As well, Germany became the main lobbyist for lifting sanctions against Russia at the business level. In 2019, German companies are looking at Russia with growing fears: business expectations have deteriorated significantly over the previous year. In addition to the volatile ruble rate, the main risk factors are sanctions against Russia. This is the key findings of the 16th Business Survey of the Eastern Committee - the Eastern German Business Association (OAOEV) and the German-Russian Chamber of Commerce, which were announced late last year. The study was attended by 168 German companies, which accounted for almost a third trade turnover with Russia in 2018. By weakening European sanctions against Russia, Germany wants to demonstrate the inappropriate momemt for imposing tighter American  sanctions by the U.S. The main effect of American restrictive measures is the state of uncertainty. Nobody knows what kind of sanctions can be imposed and how they can affect companies that have business in Russia. The main question - what will Washington do next? German companies have a lot to lose, and this is not only a reputation, as in the case of the Siemens turbines supply to Crimea, but also real money for many other companies. 

Full article see in Ukrainian 

The article was published originally at the Mirror Weekly 

 

 

 

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