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Whopping 88% of German Companies Want End to Sanctions - Poll

Despite a negative prognosis on the conditions for business in Russia, the vast majority of German investors want to stay for the long haul

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This post first appeared on Russia Insider


German companies in Russia have complained about the continued deterioration of the  business climate in Russia and expect  negative developments in the economy in 2016, reports Russian news agency Interfax. However, they are not going to leave the Russian market and are strongly in favour of the lifting of sanctions against RUSSIA, according to the annual survey of the business climate in Russia, conducted by the Russian - German  Chamber of Commerce and the Eastern Europe Committee of German Economy.

The survey was conducted in January 2016 year and it interviewed 152 German companies operating in Russia. The results of the survey were presented in Berlin today at the Conference on The Improving of the Image of Russia in Germany.

"Business conditions in Russia remain unfavourable as a result of the economic crisis and sanctions: 94% of respondents assess the business climate in Russia as negative (in  2015 - 91%). In 2016  81% of companies also expect there to be negative trends in the development of the Russian economy (in  2015 - 91%), "the report said.

Most companies (88%) are in favour of the lifting of sanctions. The breakdown was 60% of respondents voted for the immediate lifting of the sanctions, 28% wanted the gradual removal of restrictions, and only 10% chose preserving sanctions regime, another 2% were in favour of the further strengthening.

There has been a significant impact on the Russian business of German companies because of the sanctions. Compared with the results of the last poll, the market has not changed much: 38% say their business as bad (in 2015-40%), 46% - satisfactory (in 2015 45%). 13% believe their situation is good (in 2015 - 15%), only 3% is very good (in the year 2015 - 0%).

"What is more positive than last year, is the situation with the recruitment of new staff. 20% of the respondents will increase their number of employees in Russia, which is two times more than last year. 48% do not plan any changes (in 2015 -60%). Almost one third of the companies will cut staff (in 2015 -30%), " the survey noted.

In comparison  to last year, the number of companies with German capital, registered in Russia decreased by 400 and now is 5, 600. More than half (56%) of them intend to maintain a presence in the Russian market at the same level or plan to expand business (20%). 19% are considering ways to reduce their business and only 5% are going to reduce their activity in Russia.

About two-thirds of the companies considered that the association agreement between Ukraine and the EU will not have any impact on the Russian market. 31%, expect negative consequences.


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