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German government should draw clear line regarding anti-Russian sanctions by US — expert

The official said the sanctions "could deal a heavy blow and aggravate the situation with the export financing," in Germany

BERLIN, August 4. /TASS/. Germany’s Mechanical Engineering Industry Association (VDMA) is concerned by the new US sanctions against Russia and believes that the German government should "draw a clear red line" on the issue, a senior VDMA official was quoted as saying by the DPA news agency on Thursday.

"The Americans apply their rights to a third party, which is against the international law," said Ulrich Ackermann, the VDMA managing director for foreign trade, foreign trade promotion, global development and trade policy. "The German government should draw a clear red line on this issue."

He said that many European banks may avoid investing into projects in Russia for fears of US sanctions.

"It could deal a heavy blow and aggravate the situation with the export financing, which is already complicated," the VDMA official said, adding that the sanctions against Russia should not mirror the existing trade restrictions against Iran.

US President Donald Trump signed the bill envisioning tougher sanctions against Russia, Iran and the DPRK on August 2. Trump said in a statement on the occasion of signing of the law the document was flawed and some of its provisions stood at variance with the U.S. Constitution.

The Europeans are alarmed by the fact the new round of US sanctions mentions the Nord Stream 2, a major new gas pipeline, the construction of which has given rise to highly politicized wrangling. Along with it, the document says the US Administration should make the exports of American energy resources to Europe one of its priorities.

EU officials stress that the law on sanctions may be applicable to European companies that cooperate with Russia in the energy sector. German officials view this hypothetical situation as an attempt to exert extraterritorial influence.

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