What sanctions? Germany's investments in Russia continue to rise, despite extension

RT
Fri, 14 Dec 2018 07:52 UTC

© Sputnik / Evgeny Biyatov

German firms continue investing in the Russian economy despite facing barriers from economic sanctions, according to the chairman of the German-Russian Chamber of Commerce Matthias Schepp.

"German business extremely rarely invested in such volumes into Russia since the collapse of the USSR," Schepp said in a statement seen by Interfax.

Citing Bundesbank statistics Schepp said that "net direct investments of German companies in 2017 amounted to more than €1.6 billion, and in the first three quarters of this year exceeded €2 billion."

German firms were interested in opening production in Russia due to the weak ruble exchange rate, according to Schepp.

"They (foreign entrepreneurs) use the great potential of the largest country in the world with a population of over 140 million people, and they are gradually getting oriented towards export."

He noted that the chamber's business is represented in Russia by 873 firms and that makes it "by far the largest foreign business association in Russia."

Schepp also said that the total number of German firms registered in Russia decreased from 4,965 to 4,661, or by more than six percent.

"The quantitative decline, which began after the Ukrainian conflict and the introduction of mutual sanctions, is compensated by qualitative growth," he explained.

Earlier, Schepp told RT that "the foundations of German and Russian economic relations are solid even in the time of sanctions."

Sanctions against Moscow were introduced by Brussels in 2014 over Russia's alleged involvement in the conflict in eastern Ukraine. The punitive measures targeted Russia's financial, energy, and defense sectors; along with some government officials, businessmen, and public figures.

The Kremlin responded by imposing an embargo on agricultural produce, food, and raw materials from countries that joined the sanctions on Russia. Since then, both sides have been extending the measures.

Germany's business lobby has criticized EU sanctions against Russia, arguing that German companies will end up the losers, since Moscow can't be fully isolated.

Comment: RT also reports:

Russia says it's business as usual, EU sanctions extension changes nothing

The European Union's economic sanctions against Russia will be extended for another six months, European Council President Donald Tusk has said. The measures targeting Russia's economy were due to expire next month.

"The EU unanimously prolongs economic sanctions against Russia given zero progress in implementation of Minsk agreements," Tusk said on Twitter.

Predictably, you'll find that it's not Russia violating the Minsk agreements, it's Ukraine.

The prolongation of the sanctions changes nothing for Russia, according to Anatoly Aksakov, the head of the financial market committee of the State Duma (lower chamber of Russia's parliament).

"We need to take care of ourselves, to work. We understand that this is for a long time and nothing will change in half a year or a year, and I do not rule out that in 10 years.

"Nevertheless, the Europeans might soon understand that this is ridiculous and will change their position," Aksakov said.
[...]
Last month, Russian Foreign Minister Sergey Lavrov said that the main bone of contention between the EU and Russia - sanctions - was imposed by the European nations "on direct orders" from Washington. He noted that while the restrictions policy did not harm the US, the EU suffered billions in losses.

Fresh US sanctions are attempts to sabotage mid-term elections and Helsinki Summit - Russian MP

He added that Russia, which had to retaliate with tit-for-tat measures, was ready to lift the restrictions it imposed on European goods back in 2014. However, Brussels should make the first step, Lavrov stressed, saying "We hope that common sense will eventually prevail since, objectively speaking, the sanctions neither benefit Russia nor the EU."

Russia's economy has proven it can withstand prolonged sanctions, the same can't be said for the plummeting US and EU economies. Although they do add further proof to just how corrupt, pathological and inept the ruling establishment in the West really is:

• Whistleblower exposes biggest money laundering scandal in European history involving Deutsche Bank, JP Morgan and Danske Bank
• The Duran vidcast: Why Russia will not fall victim to financial terrorism
• Income stagnation and rising poverty: Millions of UK families earning less than 15 years ago
• "Astonishing fraud": Pentagon stashes billions, spends it later to avoid accountability

Also check out SOTT radio's: The Truth Perspective: Bill Browder, the Magnitsky Act, and anti-Russia Sanctions: Interview with Alex Krainer