German-Russia: Friendship that Needs to End

russia is substantially dependent on imports. Despite the statements of politicians, it will not be possible to quickly replace everything that was previously bought in Europe and the United States.

Imports in 2020 and 2021 in Russia amounted to USD 231 and USD 239 bln, respectively. Even in January 2022, russia bought goods for more than USD 23 bln abroad.

What do the occupiers bring in and where from?

One third of the aggressor country’s import accounts for machinery, equipment, and hardware:

• telephones, computers, and other household appliances;
• components for it, in particular batteries;
• conveyors and equipment for industry;
• engines and pumps;
• elevators, escalators;
• bulldozers, graders, cranes, and rollers.

Another more than 15% of imports are products from the chemical industry. It includes not only the very chemical compounds, but also medicines, cosmetics, and hygiene products.

More than 13% of imports accounts for transport. Spare parts are imported the most from abroad. However, many buy and sell cars: both cars and trucks.

It is in these sectors that russia can be called import-dependent. Accordingly, sanctions on these sectors will be most effective.

China (23%), Germany (10%), and the United States (6%) have been the largest importers for the rf in recent years. The situation with Germany is particularly interesting because the countries, in addition to close economic relations, also have friendly relations.

Friendship between Germany and Russia

Germany tried to build a close relationship with the rf immediately after the collapse of the Soviet Union. However, this cooperation was formalized in the Partnership for Modernization initiative in 2008.

In June 2019, the countries signed a document on strengthening economic cooperation. In particular, they agreed that russia would use German technologies to increase the efficiency of certain sectors of the economy that required immediate modernization.

And this was despite the fact that the European Union sanctions against russia were already in force at that time due to its aggression in the Donbas.

In addition to the cooperation of the two states, some German officials were also friends with russia. For example, German ex-Chancellor Gerhard Schröder was elected chair of the Board of Rosneft in 2017. At that time, he declared that he was not among those who advocated Western sanctions against russia.

In 2022, Schröder was nominated to the board of the russian monopolist Gazprom. He also chairs the shareholders committee of Nord Stream 2 AG, the operator company of the Nord Stream 2 gas pipeline project.

German ex-Chancellor Angela Merkel supported EU sanctions against russia for the occupation of Crimea and the armed invasion of eastern Ukraine, but also supported Nord Stream 2.

However, Germany’s Navy Chief Vice Admiral Kai-Ahim Schönbach was most notable. In January 2022, he made a number of scandalous statements, in particular, that Ukraine will never return Crimea occupied by russia.

He also argued that Ukraine and Georgia could not become members of NATO, and Vladimir Putin deserved respect. Subsequently, Kai-Ahim Schönbach resigned and Germany was making excuses.

What did russia import from friendly Germany?

The largest categories of imports from Germany in russia coincide with what russia in general imports the most:

Machinery, equipment, and hardware — 32%

In particular, 8.3% of this group of imports accounts for water heaters and heat exchangers. Another 6.7% accounts for equipment for filtering liquids and gases. 6% — for internal combustion engines.

Another more than 4% accounts for pumps, rebar for pipelines and the category of bearings and transmission shafts. 3.7% — for elevators, escalators, conveyors, and other lifting/moving/loading equipment.

Chemical industry products — 20%

Almost half of the goods in this group (47.5%) account for the pharmaceutical industry. Another more than 13% — for agrochemicals (insecticides, herbicides, plant growth regulators).

9.7% — for organic chemical compounds (alcohols, carbohydrates, sulfates, phenols), 7.4% — paints, varnishes, putties, mastics, inks, 7.6% — perfumes, cosmetics, toiletries, 6.4% — soaps and detergents.

Transport — 14%

39.5% of the imports of this group are cars and trucks, another 36.7% are spare parts for them (gearboxes, shock absorbers, axles, radiators, brake systems, clutch, bumpers). Trailers and semi-trailers are also imported (9.7%).

Plastics, elastic gum, rubber, and rubber products — 9%

Metals and metal products — 7% 

First of all, we are talking about bolts, screws, nuts, washers, various metal structures. In addition, russia buys working tools, safes, locks, and even road signs from Germany.

Germany delivers food, medical equipment, paper and cardboard, as well as some petroleum products to the rf.

What the rf exported to Germany 

Germany buys a lot in the rf too. In 2020 and 2021, russia’s exports to it amounted to USD 18.5 and 29.26 bln, respectively. In January 2022 — USD 3.54 bln.

Almost half of exports (44%) from Russia to Germany accounts for oil and petroleum products. More than a third (33.6%) — for the “hidden section.” What falls into this category is unknown.

It is worth noting that the rf sells the most goods from this “hidden section” to Germany (16%) and Turkey (9%).

More than 7% of russian exports to Germany are metals and metal products, precious stones and metals — 5%, slightly more than 1% — wood and wood products, products of the chemical industry and plastics, elastic gum and rubber.

Sanctions after the attack on Ukraine

Expectedly, Germany did not advocate the implementation of sanctions against its long-standing partner and often opposed their strengthening. Despite this, since the beginning of the invasion of Ukraine, the EU has already announced 4 packages of sanctions against russia.

The EU disconnected 7 russian banks from SWIFT, closed its skies to russian aircraft, and imposed personal sanctions on officials, businessmen, propagandists, and their relatives.

In addition, the EU (and Germany, respectively) banned their companies from exporting:

• equipment for the oil production industry;
• aircraft spare parts and aviation equipment;
• high-tech products, electronics, and technologies;
• luxury goods;

• goods that can be used for war.

Let us remind you that various equipment and transport constitute the largest share of Germany’s exports to the russian federation, and in general, the largest share of imports of the aggressor country.

Moreover, russia used the services of Germany to convert its aircraft. Just last year, according to European foreign trade statistics, Germany exported EUR 895 mln worth of converted passenger and cargo aircraft to russia.

Another crucial prohibition is to export goods and technologies to the russian federation that can be used in war.

It is about military products themselves, some chemicals (which rank second in terms of imports into the russian federation), and things of a dual way of use. For example, spare parts that are used in mechanical engineering, which can be components for military equipment.

The Armed Forces found such German parts of Bosch in russian military equipment. After that, the manufacturer announced that it would cease all its activities in russia.

In addition to Bosch, a number of other German companies responded to russia’s invasion of Ukraine.

BMW stopped the production of its cars at the Kaliningrad plant and stopped supplying cars to the russian market.

SAP Corporation, a software developer and consulting service provider that produces enterprise software and provides application support, will not sell products and services to russia.

Furthermore, Deutsche Telekom stopped developing software on the territory of russia. The Obi chain closed its construction stores in the rf.

A number of other companies imposed partial restrictions. For example, the engineering company Linde suspended the development of new projects that were subject to international sanctions in the aggressor country.

Siemens announced the cessation of products supply to russia. Maintenance and repair of equipment is promised to be carried out “in strict accordance with the sanctions.”

On March 15, it became known that Siemens would continue the maintenance of the Lastochka and Sapsan trains in russia.

The German supermarket chain Metro and the pump manufacturer Wilo did not restrict their activities in russia at all. The latter has production capacity in the rf.

German Minister of Economy Robert Habeck said that Germany could wait for the “big consequences” after Western sanctions against russia for its invasion of Ukraine. This is reported by the European Truth with reference to AFP.

Habeck said that the consequences of the war would likely derail Germany’s expected economic recovery in the second quarter of 2022 amid the easing of coronavirus-related restrictions.

However, despite the “complex business climate,” Habeck praised the companies for supporting sanctions and the international response to Moscow’s aggression.

We are grateful to Germany for the sanctions it has already imposed against russia. However, we urge it to adopt stricter measures. In particular, prohibit their companies from exporting all machinery, equipment, and hardware, transport and chemicals to the russian federation, except for medicines and basic hygiene products.

We also urge, as far as possible, to quickly refuse to buy russian energy carriers and prohibit any other imports from the russian federation.

After what russia has done, there can be no half-measures. russia is a terrorist country and an occupier. Further cooperation with it is supporting the bloody murders in Ukraine.