Orkhan Sattarov, the head of the European Bureau of Vestnik Kavkaza
European producers haven’t yet recovered from Brussels’ decision to extend sanctions against the Russian economy, but the president of the Commerce Trade Union of Germany (BGA), Anton Berner, demands a new packet of sanctions in an interview to Die Welt. He suggests launching stricter measures against Russia. According to Berner, the West still has unused instruments of torture that could damage the Russian economy more seriously. The president of BGA is sure that the conflict in Ukraine has marked a new stage in Russian-European relations – a stage of long-lasting confrontation and crises, which could last for decades. “We should be ready to make sacrifices,” Berner warns.
Many colleagues of Berner were indignant at his radical statement. The president of the Federal Trade Union of Medium-sized Business (BVMW) Mario Ohoven sharply responded to the demand for new sanctions in an interview to Handelsblatt. “The Ukrainian crisis can be settled only through negotiations. Any new sanctions will push Russia into China’s embraces,” Ohoven says, noting that Beijing is happy to substitute European goods at the Russian market. According to him, China provides an alternative to EU goods in the gas sphere and machine engineering.
Ohoven admits that consequences of anti-Russian sanctions are obvious in the business sector. “The machine-engineering industry of Saxony-Anhalt, which is mainly export-oriented, reduced its production 50% in the situation,” BVMW president says. Ohoven stresses that Russian gold reserves take fifth place in the world, and 80% of Russian enterprises are marketable, according to Standard & Poor’s. In this context removal of Russia from the international payment service provider Swift would make other actively-developing countries think about alternative payment service providers. Ohoven says that at the moment Chinese UnionPay is conquering the Russian market.
The head of the Eastern Committee of the German Economy, Eckard Cordes, also stands against new anti-Russian sanctions: “New sanctions by the EU won’t contribute to reductions in tension. By launching sanctions, the Europeans are shooting themselves in the foot.”
The discontent of representatives of the German industry with the economic sanctions regime is growing. For example, the item restricting exports of dual use goods and technologies brings a lot of troubles to German producers. The Executive Director of the Machine Tool Plants Union of Germany, Wilfried Schäfer, states that trade contacts with Russia are preserved only due to old contracts which were signed before launching sanctions. At the same time, according to him, the number of contracts signed by German producers and Russian clients fell in 2014 by 40% in comparison with results of 2013. Schäfer notes that along with restrictions of German exporters, the ruble’s fall and the financial situation in Russia lead to missing important clients. However, Schäfer stresses his loyalty to the German government: “Despite the fact enterprises are suffering damages, our Union supports the political course of the German leadership.” At the same time, he hints that he expects support from the federal government in the current situation. “German machine tool producers hope that in the second half of the year internal demand for their goods will grow,” Schäfer says.
