German companies engaged in Russia, losing by the sanctions imposed against the country money. But despite the difficult conditions, the optimism dominated. From Moscow’s Miodrag Soric.
Opening a Mercedes Benz factory in Moscow in April 2019
The policy should be more closely involved in Russia, not China or Japan displaced Germany’s export companies. The President of the chamber of foreign trade (AHK) Rainer Seele, as well as the Chairman of the Board of the German chamber of Commerce in Moscow, Matthias Schepp requested.
Both of them presented the results of a survey conducted by the chamber among its members. 141 companies with German participation took part. After that, Russia remains a difficult market. Less than a third of respondents assess the overall development in Russia ‘positive’ or ‘slightly positive’. The have a number of reasons.
Presentation of the German chamber of Commerce survey in Moscow with Rainer Seele (middle) and Matthias Schepp (on the left)
Russia in the sanctions pliers
The business activities affect especially the sanctions by the EU and the USA. Wherein Schepp differentiated between the “precise and clear” sanctions of the Europeans and the rather “car sanctions imposed by the Americans”. The EU wants to change the behavior of the Kremlin’s Ukraine policy, says Schepp. The Americans would follow their own economic interests. As an example, he cited the efforts of Washington to distribute LPG from the US to the EU market. Explain why the White house against the extension of the Nord stream for further Pipeline, the additional Gas from Russia to Europe to deliver.
“Washington wants to force Russia to its knees,” says Schepp. This is the wrong way to go. The AHK survey evidence: Due to the sanctions, German companies lose over one billion euros in the year.
In a DW interview, the foreign policy spokesman of the SPD group in the Bundestag, Nils Schmid, welcomed the sanctions. They are not an end in itself. “You were the right response of the European Union on the international illegal annexation of Crimea and the conflict in the South-East of Ukraine, the persists. It should, however, verifiable progress in the implementation of the Minsk agreements, then we should start working together with our EU partners, the entry into the exit from the sanctions.”
Stream work on the North Pipeline
Russia’s economy is in a bad condition
Schepp and soul of a defendant in Moscow, the weak economy in Russia. Currently, different Figures are available. In the best case, Russia’s growth is 1.3 percent. But there are also estimates that are significantly below average, even by recession talk. Russia would have to grow by three to four percent, in order not to lose the connection to the world economy. After the invasion in the Ukraine of 2014, the economy is weakening. It suffers, also, the the survey of the AHK, too much bureaucracy and corruption are revealed. Schepp also warned against protectionist tendencies in Moscow. “We think nothing of a return to a planned economy,” he said bluntly. Russian companies and the Russians themselves “should trust more in a market economy”.
The arrest of a US Investor, Michael Calvey had been a “hard blow” against the investment climate in Russia, lamented the AHK-chief. He regretted that the arrest had not been of the regular police, but by the secret services carried out. Calvey had advertised in the past, always for a stronger commitment of foreign countries in Russia. Of all places he was arrested, has the result that other investors are asking now: “If this happens to Calvey, can this happen to me also,” said Schepp.
The Event Of A Dispute, Nord Stream 2
In spite of the difficult conditions the German economy is growing in Russia. “The German economy has a large interest in the Russian market,” said Rainer Seele. Many businesses expect to increase turnover and profit. 39 percent want to invest according to AHK survey in the nearest time in Russia. 29 percent want to expand their activities. Almost all AHK-members speak out for the speedy completion of the second strand of the Nord stream Baltic sea pipeline 2. 60 percent of the project had already been completed. The Americans should occupy the project with further sanctions, could make the construction in the worst case, the Russian energy group Gazprom, alone, is estimated Rainer Seele. With other words: The project is not actually to stop. Opponents of the Pipeline in the United States, in Poland or in the Ukraine under soul, to pursue their own economic interests.
Relations with Russia: Federal Minister Peter Altmaier (right), seen here with Maxim Oreshkin, the Minister of economic development of Russia is committed to a better economy
At the end of soul and Schepp praised the commitment of Federal Minister Peter Altmeier. Within a year he had been four Times in Russia. The AHK members wished to see a stronger presence of German Chancellor Angela Merkel in Russia. According to the survey, 87 percent of the companies surveyed are in favour that the Chancellor takes part more often in international economic forums in Russia. Many companies fear that Chinese or Japanese companies could displace German companies from the Russian market. Are you hoping for more support by a policy in Berlin.