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German business continues to invest in Russia, despite Covid-19 pandemic

German business continues to invest in Russia, despite Covid-19 pandemic
The volume of German companies’ direct investment in the Russian economy amounted to €1.8 billion ($2 billion) in the first quarter of 2020, according to the Russian-German Chamber of Commerce.

“Despite the measures to combat the coronavirus infection… the volume of direct investment has practically not changed compared to the same period of 2019 [Ed. – €1.9 billion],” the chamber said, citing Bundesbank data. 

“The fact that German business continues to actively invest in Russia, despite the measures to combat the spread of coronavirus infection in Germany, Russia, and around the world, shows that the Russian market remains attractive, regardless of serious political tensions, sanctions and global trade conflicts,” said the chamber’s chairman, Matthias Schepp.

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He explained that family-owned medium-sized enterprises in Germany, which traditionally actively invest in Russia, are focused on the long term and are not afraid of temporary crises.

In 2018 and 2019, German companies poured some €3.3 billion ($3.7 billion) and €2.1 billion ($2.3 billion), respectively, into the Russian economy. According to Schepp, German business in Russia has already passed the test of crises, including Western sanctions, and “will be able to successfully overcome the current coronavirus pandemic.”

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