The sanctions and counter-sanctions between Russia and the West have negative economic effects for almost three quarters of German companies operating in Eastern Europe. Mechanical and plant engineering in particular is affected, according to a survey published on Wednesday by the Committee on Eastern European Economic Relations. Almost 130 companies took part in the association’s survey between March 11 and 25. Almost 72 percent of them stated that they were affected by the sanctions.
The biggest problem for these companies are the restrictions on payment transactions. They also report broken supply chains, payment defaults and problems with suppliers. “Particular problems arise for the company from the fact that the individual consequences add up,” said Oliver Hermes, Chairman of the East Committee.
More than half of the companies maintained business relationships with Russia and Belarus as well as with Ukraine. The companies are not only suffering economically from the effects of western sanctions. Almost half of them are also affected by the Russian obligation to pay rubles.
They therefore want direct financial aid from the federal government as well as legal support. (dpa)