Geo-economic Interests of Russia and Germany in the Field of Industry

  •  Nikita Dmitrievich Khoroshun    


The article discusses the basic mechanisms and instruments of bilateral cooperation between Russia and Germany in the field of industry. Russia is interested in cooperation on technological development of machine industry, electrical engineering, chemical industry and other manufacturing sectors. For Germany, relations with Russia are important in terms of receiving energy resources. During the years of economic partnership between the two countries impressive results have been achieved in mutual trade. Russia occupies the 16th place among the other countries in terms of application of the German capital. The total amount of accumulated German investments in the Russian economy exceeded 16 billion Euros. Germany still remains a key supplier of equipment and technology for 20 of the 33 industries. At present, there are 6167 companies with German capital operating in 81 of the 83 territorial entities of the Russian Federation. More than 40% of German companies considered development of their businesses in Russia as "good" or "very good". Most German companies are expanding or plan to expand their production in Russia. At the same time, among the companies, localized their production in the country, there are several problems, associated with regulatory changes in connection with the accession of Russia to the WTO. At the same time, the Russian government is taking measures to improve the implementation of investment projects and expand cooperation in the field of industry. The economic future of the bilateral partnership between Russia and Germany may be greatly affected by the negative effects of the EU sanctions policy towards Russia due to political conflict in Ukraine. In case of breaking partnerships, not only Russian, but also the German economy will suffer. The consequences of tougher sanctions have already begun to affect the German business in Russia: corporations, which are represented on the Russian market, are already bearing losses. According to the author, it is exactly business that may affect policy to support equitable dialogue that would lead to a peaceful solution and translate into action the possibilities of mutual cooperation in the industrial sector.

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