german economy
All throughout the ranks of the German economy, the "Russia sympathizers" are gaining more confidence. The business managers had been silent ever since spring of 2014, when German Chancellor Merkel more or less superimposed her "political primacy" on the Chairman of the Committee on Eastern European Economic Relations, Eckhard Cordes. After all, according to Cordes, the reward for following her lead would be real and tangible. Russia would abide by the rules, give Crimea back to the Ukraine, and the European framework of peace would come back into balance.

After almost two years, none of these promises have come true. For many, any credit that had existed in support of the political sanctions has been completely used up.

Aside from that, the majority of the Russian political class is convinced that these "rules," which are often talked about, would be tailored-made to fit the West. This "European framework of peace" has already been suspended since the bombing of Serbia in 1999. So no one expects Moscow to budge for the EU, especially not with regard to Crimea.

Managers and businesses want to see some dialogue

The managers and entrepreneurs in Germany are not in the mood for any legal wrangling, nor do they want to spit hairs politically. They want to have a dialogue. They want to do business. They want to push their factories to full capacity and employ their staff. The support that Bavaria's Minister-President Horst Seehofer received from business circles during his trip to Moscow last week speaks volumes. Politicians and journalists sharply criticized him โ€” both professions that don't have to worry about incoming orders being key to economic success. Gernot Erler, a government contracted coordinator for Russian affairs, even accused Seehofer of having "an unquenchable desire for attention."

Klaus Mangold, a businessman who's specialized in Russia for years, was interviewed at the weekend by the German Frankfurter Allgemeinen Sonntagszeitung (FAS). He emphasized how necessary it is to put German-Russian relations back on the improvement agenda: "Eastern Europe is a heart-felt issue for me, and it presents great economic opportunity at the same time."

Above all, he defended German business activity in Russia against one-sided, prejudice-driven allegations. Mangold referred to China in saying that "those that do business with China are not immediately denounced as 'China sympathizers.'" Although Germany does not have the strong cultural and historical ties to China as it does to Russia, the country has more influence with regard to China's economy.

Neither Mafia nor vodka

With every effort possible, Russia is inundated with stupid prejudices. Mangold shares his thoughts on the subject: "I haven't had one single vodka during the last five years of business dinners I've had in Russia." Upon hearing the eternal clichรฉ of the Russian mafia, Mangold sits up: "This is no longer an issue." He says that the mafia was a problem in the early nineties, "in the wild years after the transition."

The Transatlantikers fear a rapprochement with Russia like the plague, and people like Mangold are a thorn in their side.

[Translator's note: Transatlantiker is a term use by German media to describe politicians who are convinced that Germany should serve as an extension of the US power structure.]

The fact that the FAS has given Mangold a stage to speak on suggests that the power of the US-British alliance is not unbreachable. According to the FAS, the Economist is already concerned about Germany's sympathy towards Russia and how this challenges the line which has been clearly drawn in the sand by the West.

The number of German businesses who refuse to step over this line is shrinking. You may be wondering what gives the German government โ€” the EU governments โ€” the right to hold Russian businesses hostage while Kiev's parliament continues to deny autonomy to Eastern Ukraine. In the past week, the appropriate law refuses to come to a vote. In this sense, Minsk-2 is as good as failed. It fails not because of the Russians, but because of the Ukraine's self-made failure to act. This makes the EU sanctions policy very one-sided. After all, everyone is having to endure the sanctions, but the sanctions have nothing to do with the current interruptions in the peace process.

Where are the sanctions against Kiev?

So where are the sanctions against Kiev? You can just hear the representatives of German companies complain to each other in the pub at the end of the day. Do you blame them? Just a few weeks ago, the sanctions against Russia were extended another six months. What happens after six months? The automatic response of, "It's Russia's fault. Russia will be punished" is no longer having any effect on informed contemporaries.

The German know-it-alls are going to have to seek a compromise. Klaus Mangold: "We can't think that we can just prescribe rules for the Russians. Russia doesn't need to have the Germans telling it what to do."


Originally Appeared at German-Russian Economic News. Translated from the German by Susan Neumann