BERLIN (Dow Jones) — According to German foreign trade, the Russian attack on the Ukraine will also result in far-reaching cuts for all trade. The consequences are “substantial”, even if the share of German foreign trade with the Ukraine and Russia in the total volume is less than 3 percent, explained the Federal Association of Wholesale, Foreign Trade and Services (BGA). Because in addition to rising energy costs, trade in non-sanctioned goods is also likely to be impaired. According to the BGA, this includes imports of raw materials such as aluminium, coal or wheat.
“The sharp rise in energy and raw material prices will put an additional burden on large parts of the German economy. The supply problems and supply bottlenecks will worsen in certain areas,” said BGA President Dirk Jandura on the publication of the latest foreign trade figures, according to which German exports rose by 7, have increased by 5 percent. “We anticipate significant subsequent problems in the logistics area due to a lack of drivers, reduced air freight capacities and further bottlenecks in sea freight.”
The sanctions imposed on Russia by the West would be supported by the entire German economy. However, it is now a question of helping the companies to implement the numerous new regulations and of quickly clarifying the open questions. Because the sanctions would have far-reaching consequences.
“We expect that the non-sanctioned trade with Russia and the Ukraine will also come to a complete standstill in the short term. Switching to other sales and procurement markets is not easy and is usually not possible in the short term,” warned the BGA.
Trade barriers had already spread worldwide with the beginning of the corona pandemic. Many companies would now also have to do without suppliers in the Ukraine and Russia. “It is all the more important that the Federal Ministry of Economics develops a strategy for strengthening foreign trade with other regions,” Jandura demanded.