Tags: trade | war | Russia | Germany

Trade War Would Be Worse for Russia Than Germany, BGA Lobby Says

Wednesday, 12 Mar 2014 10:37 AM

German companies doing business with Russia should prepare for worsening relations as a result of the standoff over Ukraine, Germany’s BGA lobby of exporters and wholesalers said.

Germany would have more to lose than other European Union countries trading with Russia, BGA president Anton Boerner told reporters in Berlin today. About 6,200 companies generate exports of 36 billion euros ($49.9 billion) and imports of 40.4 billion euros in trade with Russia, he said.

“The result of a trade war would be painful for the German economy, but life-threatening for the Russian economy,” Boerner said.

Russia has sparked the worst crisis with the West since the Cold War as it seeks to wrest control of the southern Ukrainian region of Crimea. Barring any “obvious changes in Russia’s action,” the European Union will discuss harsher penalties on Russia on March 17, German Foreign Minister Frank-Walter Steinmeier said yesterday.

Boerner called for Russian President Vladimir Putin to be included in any negotiations to end the crisis, saying that the EU “must include Russia, must include Putin in the decision- making processes, and at eye-level and as part of the solution.”

The BGA’s forecast that Germany’s foreign trade with the rest of the world will exceed 2 trillion euros this year may be quickly overtaken if the Crimea crisis escalates, Boerner said.

German exports will expand 3 percent to 1.13 trillion euros and imports will grow 2 percent to 914 billion euros, generating a trade surplus of 215.6 billion euros, he said. While this is the highest since foreign trade statistics were started, the surplus is also “positive” for Germany’s European neighbors, Boerner said.

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German companies doing business with Russia should prepare for worsening relations as a result of the standoff over Ukraine, Germany's BGA lobby of exporters and wholesalers said.
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2014-37-12
Wednesday, 12 Mar 2014 10:37 AM
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