In the town of Volzhskiy in the Volgograd region of southern Russia, two German companies, Jena Analytik and AJZ Engineering, are in the final stages of constructing and equipping a new 150-bed kidney transplantation and dialysis center. With offices across Russia, the German companies are also building a radiopharmaceutical manufacturing center for a neurosurgery institute in Moscow, financed by the Russian government.
Russia accounts for nearly one fifth of sales at Jena Analytik, which has operated in the country since before the communist revolution. “We are very involved there,” said Dana Schmidt, a company spokesperson. “And, of course, we’re watching the situation closely.”
Ms. Schmidt said the company is concerned how the sanctions could affect spending in Russia, in particular investment in the hospital sector.
The latest round of sanctions has bit into business between Russia and Germany, and even more could be on the way if the conflict in Ukraine worsens. Yet, for many small German firms long established in Russia, it’s business as usual.