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German-Russian trade chamber warns of major impact of EU sanctions against Russia

May 16, 2014, 22:58 UTC+3 LONDON
The chamber warns the authorities in Berlin that the loss of market share for German and European businesses in Russia might be “long-term and sustainable”
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LONDON, May 16 /ITAR-TASS/. EU efforts to impose sanctions on Russia over the charges of Moscow’s alleged “arm” in the events in Eastern Ukraine have already brought up come negative effects and may have a long-lasting detrimental impact on German industries, says a confidential report that the German-Russian Chamber of Foreign Trade has submitted to the German government.

Reuters recalls in this connection that the chamber represents the interests of about 800 German companies working in Russia, saying the confidential paper “underscores the extent of concern among German businesses over the Ukraine crisis.”

The chamber indicates that German industrialists are stepping up efforts to persuade Federal Chancellor Angela Merkel to stay away from pushing ahead with the demand for tougher sanctions any further.

Reuters quotes a two-page annotation to the report as saying that "deeper economic sanctions would lead to a situation where contracts would increasingly be given to domestic firms, projects would be suspended or delayed by the Russian side, and Russian industry and politicians would turn to Asia, in particular China," the paper says.

The chamber warns the authorities in Berlin that the loss of market share for German and European businesses in Russia might be “long-term and sustainable” and would cause an irreparable damage to the German companies’ competitive positions in Russia.

The report also warns the government a loss of contracts with the Russian partners and customers might bring about big job losses inside Germany and leave the country’s companies exposed to telling compensation claims in case these companies are forced to break off relations with Russian counterparts.

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