German Investment in Russia Barrels Ahead Despite Sanctions
German firms have invested more money and started more projects in Russia than in previous years
European sanctions against Russia have been unable to dent the interest of German business in investing in the country, Sputnik News reports:
“The willingness to invest in Russia remains consistently high. In 2016, the level of investment has reached the numbers not observed for a long time … The amount of investment at the end of the year is much greater than in the previous couple of years. According to the [German] Federal Bank, during the first half of 2016, the volume of direct investment from Germany was 50 percent higher than in the corresponding period of 2015,” [German Ambassador to Russia Rudiger] von Fritsch told the Moskovsky Komsomolets newspaper.
He added that science and culture were other important areas of cooperation between Russia and Germany.
In fact, investment from German firms has actually doubled since the start of sanctions in March 2014, Sputnik said, citing der Spiegel:
According to figures from the German Bundesbank, German firms made 1.73 billion euros ($1.88 billion) of direct investment in Russian during the first six months of this year, almost as much as the 1.78 billion euros they invested during the whole of 2015.
In June consulting company EY (formerly Ernst & Young) reported that foreign investors established 201 new investment projects in Russia last year, an increase of more than 60 percent compared to 2014.
Germany accounted for the most projects (36), followed by the US (29) and France (20). Italy and China were next with 12 projects each, Russian news outlet RBK reported.
All told, it looks like German business is not interesting in fighting a new cold war with a Russian bogeyman, despite the German political establishment's willingness to serve the interests of Washington.
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