Exports to Germany provide Russia with fat incomes
Export to Germany is very crucial for the Russian Federation, and Germany also lives on cooperation with Russia
Germany is dependent on Russian oil and gas, Russia, on the other hand, imports cars, machinery and chemicals from Germany . This trade has always been a win-win. But could the “Crimea crisis” have a negative effect on this cooperation? What can possible anti-Russian sanctions lead to?
Regarding mutual trade between Germany and Russia, it can be said that it is almost balanced in terms of bilateral exports and imports. Russia exports to Germany in the form of oil and gas, which is mined in Siberia, and Germany, on the other hand, exports to Russia primarily automobiles and production for the engineering and chemical industry.
In connection with the worsening of the situation in Crimea, Germany is now expressing deep concern. The Russian economy and market have already experienced significant declines, Germany maintains much more intensive economic contacts with Russia than with other European countries. There are approximately 6 thousand in Russia. German companies, it is more than the number of other EU countries. About 300 thousand Germans cooperate with companies that have contact with Russia.
The trade turnover between Germany and Russia amounted to EUR 76.5 billion last year. Meanwhile, Russian exports to Germany amount to EUR 40.5 billion, and German exports to Russia amount to EUR 36 billion. Germany is Russia’s 3rd largest trading partner.
The participants in the Crimean conflict should look for a peaceful way to resolve the dispute, because a new “cold war” between Russia and the West could strongly disrupt the German economy and thus exports to Germany.
Russian exports to Germany mainly consist of natural gas. Germany has been dependent on Russian gas for several decades. Almost 40% of German gas imports are from Russia, and at the same time almost half of Russian gas is exported to Germany via Ukraine. Another gas supplier that provides exports to Germany with a share of 30% is Norway.
Russia also provides exports to Germany in the form of oil supplies. More than 35% of Germany‘s needs are Russian supplies. Germany fears that if sanctions are imposed against Russia, Russia could respond by cutting off oil and gas supplies. Which, in the long term, German businesses would feel as a big problem.
