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German companies report 3 billion euro losses in Russia — newspaper

September 12, 2014, 16:31 UTC+3 BERLIN
About 300,000 jobs in Germany depend on economic relations with Russia
1 pages in this article
© ITAR-TASS

BERLIN, September 12. /ITAR-TASS/. German enterprises are sustaining serious losses due to the sanctions war between the West and Russia, and also against the background of the general situation caused by the Ukrainian crisis, Germany’s Handlesblatt newspaper reported on Friday.

According to the publication, German companies have seen a 3-billion euro reduction in their profits in Russia over the first six months of the year.

The newspaper cites as an example the Stada pharmaceutical group situation that gained 113 million euro before tax in Russia last year, which accounted for 45% of its total profit. However, in the present conditions the enterprise has had to downgrade its annual forecasts, which caused the shareholders’ uncertainty. As a result, Stada has lost 500 million euro or 25% of its exchange value, the newspaper says.

In addition, Russia is an important market for Metro, which manages Metro Cash & Carry networks in Russia, as well as the Media Markt appliance shop. Its turnover in Russia is about 4.3 billion euro and the staff size - 20,000 people.

According to Handelsblatt, this year is likely to be uneasy also for the Bionorica pharmaceutical company that got a 78-million euro profit in Russia last year - 33.5% of its total turnover. “Russia remains one of the most important trade partners for us. We would prefer no additional obstacles to our business,” Bionorica head Michael A. Popp said.

The machine building company Claas KGaA MbH, manufacturing tractors and combine harvesters in Krasnodarsky Region, Deutsche Bahn railway group, Henkel AG & Co. chemical giant, Adidas AG sportswear manufacturer and MAN SE machine building company, making trucks, buses and engines, have found themselves in a similar situation, the newspaper writes.

In addition, one of the German automobile giants - Volkswagen, has made a decision to suspend car assembly at its plant in Kaluga for 10 days, starting from September 8. This has been done despite the fact that the company head Martin Winterkorn has previously called Russia “Europe’s number one growing market.”

Last year’s trade turnover between Germany and Russia accounted for 76 billion euro. About 6,000 German companies operate in Russia with the total investment volume reaching 20 billion euro. About 300,000 jobs in Germany depend on economic relations with Russia.

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