Large German companies continue to do business in Russia despite sanctions
While Germany provides military support to Ukraine, large German companies continue to do business in Russia.
San in Switzerland The University of Gallen revealed that only 8.5 percent of EU and G-7 companies with revenues above $1 million had withdrawn from Russia.
Despite the sanctions from Western countries, German-based companies have the largest share with 19.5 percent (250 companies) among 1,284 G7 and EU companies that still have active equity investments in Russia. It is followed by companies based in the US with 12.4 percent, Japan with 7 percent and Italy with 6.3 percent.
Research from Yale University in the US also showed that 19 German companies continued to operate as usual in Russia, with 18 companies carrying out key business activities while postponing their future planned investments, and 20 reducing some key business activities but maintaining others.
The study noted that 31 companies have left the country, with 39 German companies temporarily restricting most or almost all of their operations while keeping their return options open.
GERMAN COMPANIES CONTINUE THEIR BUSINESS IN RUSSIA
German retail giant Metro issued a statement condemning the “Russian attack on Ukraine” in March 2022, shortly after the start of the war, but said it would continue its activities in Ukraine.
In a statement from the Düsseldorf-based company, “The decision was not made easily, it was made after careful internal review. The company is responsible for its 10,000 employees there, and many buy our food.” expressions were used.
German car company Continental, which makes brake systems, interior electronics and wheels, also ceased operations in Russia in March 2022 but announced it would resume operations the following month, claiming it wanted to protect its local staff.
“To protect our employees in Russia from prosecution, we are temporarily restarting production of passenger tires for the local market at our tire factory in Kaluga if necessary,” the company statement said. information was shared.
While still operating in Russia, German tech giant Bosch is seeking buyers to sell its Russian assets as German authorities have launched an investigation against the company.
The German Ministry of Finance has launched an investigation into whether Bosch violated a ban on the export of goods that could be used for both civilian and military purposes.
The famous German chocolate brand Ritter Sport still continues its activities in Russia. The company had previously announced that it would donate the profits from its activities in Russia to Ukraine.
AnyDesk Software, which develops remote support software, continues to do business in Russia as usual, despite the war in Ukraine.
The German medical company B. Braun, on the other hand, did not take any steps to reduce or suspend its activities in Russia, while Germany’s largest chemical and pharmaceutical company, Bayer, suspended its business activities in Russia and Belarus “except for essential health and agricultural products” in the country. still active.
Of note, although construction equipment supplier Zeppelin Group has previously announced that it may have to leave Russia, it has not announced any withdrawal decision so far.
Germany-based agricultural machinery manufacturer Claas, BPW, Fresenius, Siemens Healthineers, Storck continues its activities in Russia as in normal times, despite the war in Ukraine.
Despite the suspension of new investments in Russia, German Knauf, the manufacturer of building materials in Europe, continues its activities in many cities in the country.
It should be noted that Merck, which operates in the healthcare sector, is active in Russia despite some cutbacks in its activities. (AA)