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The conflict with Russia has a noticeable impact on bilateral trade as it is affecting the demand for German engineering products, Wiechers said.
Fears over further western sanctions against Russia over its stance on Ukraine and a possible embargo on Germany’s equipment exports are compelling Russian firms to abandon their orders placed with German producers, the VDMA said.
The European Union’s sector-wide sanctions against Russia may primarily affect German companies producing machine tools, and also various pumps and valves that fall under the category of dual-use products, VDMA expert Friedrich Wagner said.
Germany’s equipment exports to Russia fell by 17.2% in the first quarter of 2014, according to the WDMA data, The Ukraine developments and western sanctions against Russian companies have affected two-thirds of German machine-building firms, especially enterprises in east Germany with traditionally strong ties with Russia, director of the VDMA eastern division Reinhard Patz said.