German media: Despite tightening Western sanctions, a large number of German companies still plan to remain in the Russian market

A new survey on the business environment in Russia shows that despite the increasingly severe sanctions imposed by the West in response to Moscow's aggressive war, hundreds of German companies still plan to continue doing business in Russia. Moreover, many of the surveyed companies are concerned that leaving the Russian market may result in significant financial losses.

Matthias Schepp, president of the German Chamber of Commerce in Russia, said, "Only 4% of German companies plan to leave the Russian market." Many companies are worried that if they leave, they will suffer major financial losses.

Schepp told Deutsche Presse-Agentur in Moscow, "After four years of bloody conflict and sanctions, those companies that have remained in Russia intend to stay." He referred to a survey of about 260 company executives. He said the importance of the Russian market is still not to be ignored. The survey showed that there are still about 2,000 German companies operating in the world's largest country.

The German Chamber estimates that Germany's assets in Russia exceed 100 billion euros. "Germany's assets are actually growing because Russian law prevents the large-scale transfer of profits," Schepp said. These assets should be protected, not handed over to the Moscow government or wealthy individuals associated with the Kremlin.

In general, the business environment in Russia and the expectations of German companies have clearly deteriorated. More than half of the companies expect negative economic growth in Russia next year. If the war does not end, sanctions may also be further tightened.

Schepp: Companies believe Germany suffers more damage

The survey shows that more than half of the German companies believe that these punitive measures have caused "significant or very significant damage" to the Russian economy. Schepp explained, "However, 49% of the surveyed companies operating in Russia believe that the sanctions have caused more damage to Germany than to Russia."

Schepp believes that policymakers in Germany and Europe underestimate the "resilience" of the Russian economy in the face of sanctions. He said, "Lack of information leads people to misjudge the actual situation in Russia, especially regarding issues of war and peace."

He pointed out, "One-sided thinking, and in some cases denial of reality, often leads people to underestimate the ability of the Russian people to endure suffering." He also said, "In an economic war, European politicians believe that increasing sanctions and economic pressure can force Russia back to the negotiating table and make concessions, which is undoubtedly a gamble."

The survey shows that growth is expected mainly in the fields of information technology and telecommunications, pharmaceuticals and healthcare, as well as agriculture and food industry. The German-Russian Chamber has 750 members and, according to its own statistics, is the largest foreign business association in Russia.

Source: rfi

Original: toutiao.com/article/1853257827913865/

Statement: This article represents the views of the author himself.