German Exports to Russia Down 34%
- New Europe Investor
- July 24, 2015
German exports to Russia have slumped by 34% for the first five months of this year compared to the same period of 2014.
Exports during the first five months of the year came to €4.8 billion, according to a lobby group representing German industry in eastern Europe.
They added that German exports to Russia are predicted to be around €20 billion this year, which would represent a fall of around one third.
2012 saw record levels of exports from Germany to Russia at €38 billion.
When sanctions were imposed by western countries last year as a result of Russia’s annexation of Crimea, Germany were unsurprisingly initially reluctant to implement them.
The Moscow Times states that 6,200 German firms were active in Russia with 300,000 jobs linked to exports directly.
Whilst sanctions have been a significant factor in the fall in trade between the two countries, Russia’s economic contraction in 2015 is also a factor.
As the ruble has fallen in value also, this has contributed to spiralling inflation that has hit real wages hard, hence Russians ability to import foreign goods.