Export Controls


Companies Call for Government Help Over Confusing E.U. Sanctions Against Russia

The downing of a Malaysian Airlines plane in territory disputed by Russian-backed rebels prompted the sanctions. Source: DPA
The downing of a Malaysian Airlines plane in territory disputed by Russian-backed rebels prompted the sanctions. All 298 people on board were killed.
  • Why it matters

    Why it matters

    Confusion over EU export restrictions among German firms is so great that some engineering firms have stopped submitting bids to Russian clients.

  • Facts


    • Many German companies, some with long-standing ties to Russia, are not sure which products fall under EU-imposed Russian economic sanctions.
    • Chambers of commerce and industry have seen a surge of inquiries from member companies.
    • Politicians are getting involved, especially in states with large numbers of companies affected by the sanctions, but so far the federal government has been reluctant to provide aid to businesses.
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The European Union’s economic sanctions imposed against Russia last week are problematic for businesses. Many companies are preparing for substantial declines in revenues, while others are extremely anxious because they are not entirely certain whether their products fall under the export restrictions of the sanctions regime.

Local chambers of industry and commerce are receiving more inquiries, and there is great demand for advice, especially among the medium-sized companies that make up the backbone of the German economy, said officials with the Association of German Chambers of Industry and Commerce (DIHK). According to the German Engineering Association (VDMA), many companies are steering clear of business deals with Russia and have stopped submitting bids to Russian clients.

The prospect of impending losses has led to political involvement. States like Saxony and Saxony-Anhalt, where companies have traditionally maintained strong business ties with Russia, as well as the northern state of Lower Saxony, are calling for government assistance to businesses affected by sanctions against Russia. They want additional aid for companies and advocate a uniform, nationwide approach to the problem. Olaf Lies, a member of the center-left Social Democratic Party (SPD) and the economy minister in Lower Saxony, even proposed a special conference of state economy ministers.

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