BERLIN, July 31. /ITAR-TASS/. The Ukraine crisis has a negative effect on Germany’s machine-building sector, chief economist of the German Machine-Building Association (VDMA) Ralph Wiechers said on Thursday.

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.