Reversal of Trend in Business with Russia

BERLIN/MOSCOW (Own report) – German business circles are discerning a clear reversal of trend in business with Russia, despite the EU’s alleged prolongation of sanctions against Moscow. In the third quarter of 2016, German exports to Russia have increased for the first time since sanctions were imposed. German investments in Russia are again growing already reaching a volume of two billion Euros this year. The Daimler Group, for example, is currently planning to construct a plant worth 300 million Euros near Moscow. The gradual growth in business relations is flanked by negotiations at the state secretary level, with the preliminary groundwork being laid by leading think tanks. However, that President-elect Donald Trump, who, together with his designated Foreign Minister, ExxonMobil CEO Rex Tillerson, intends to change course and cooperate more closely with Russia, at least on a punctual basis, is not seen very favorably from the German perspective. It would undermine the traditional division of labor among western countries in relationship to Russia that had been to Germany’s advantage. While Washington was usually exerting massive pressure on Moscow, Berlin could often assume an advantageous mediator role – with a consensus on exerting pressure on Moscow to submit to western policy, while enhancing its own business relations. Continue reading