- Sanctions Costs: German Exports To Russia Collapse, “Risk 50,000 Jobs”!
by Tyler Durden, www.zerohedge.com
Just a month ago, Germany’s powerful business lobby threw its weight behind tougher sanctions against Russia (dropping its previous objections). It appears they are now regretting that decision. As The Federation of German Industry (BDI) reports today, exports to Russia in H1 2014 dropped 15.5% from 2013 and “may drop by as much as 25% – posing a risk to 50,000 German jobs.” We are sure, as Zee Germans look across the pond at the S&P 500 hitting record highs, BDI’s conviction that Russia’s action must face significant consequences may just fall apart again.
Just 3 weeks ago, Germany’s powerful business lobby has dropped its opposition to tougher sanctions against Russia ahead of today’s crunch EU ambassador meeting in Brussels.
BDI chief Ulrich Grillo said sanctions could would come at a “painful” cost to European business, and to German exporters, but that the game had changed with Russia.
“The BDI and I personally have become convinced that the behaviour of the Russian government in the Ukrainian conflict of secession must have noticeable consequences for Moscow, ”