Just a month ago, Germany’s powerful business lobby threw its weight behind tougher sanctions against Russia (dropping its previous objections). It appears they are now regretting that decision. As The Federation of German Industry (BDI) reports today, exports to Russia in H1 2014 dropped 15.5% from 2013 and “may drop by as much as 25% – posing a risk to 50,000 German jobs.” We are sure, as Zee Germans look across the pond at the S&P 500 hitting record highs, BDI’s conviction that Russia’s action must face significant consequences may just fall apart again.
Just 3 weeks ago, Germany’s powerful business lobby has dropped its opposition to tougher sanctions against Russia ahead of today’s crunch EU ambassador meeting in Brussels.
BDI chief Ulrich Grillo said sanctions could would come at a “painful” cost to European business, and to German exporters, but that the game had changed with Russia.
“The BDI and I personally have become convinced that the behaviour of the Russian government in the Ukrainian conflict of secession must have noticeable consequences for Moscow, ”
And now… (as Bloomberg notes),
Export of German-made machine spare parts in particular hit by sanctions due to possible dual-use nature of goods, BDI industry group’s East European Committee said today in e-mailed statement.
Sanctions also impacting German exports to states linked to Russia via excise agreements: 1H exports to Belarus drop 21%
*GERMAN 1H EXPORTS TO UKRAINE DROP 32%: BDI GROUP
1H 15.5% drop in German exports to Russia versus 1H 2013 valued at EU2.8b
2014 German exports to Russia may drop by as much as 25%, pose risk to 50,000 German jobs
* * *
Of course, this should come as no surprise… Is it time to ink that gas-for-land deal?
via Zero Hedge http://ift.tt/1t7ifnF Tyler Durden