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German economy concerned about imminent expropriations in Russia

German companies have raised concerns about possible expropriations of international companies in Russia. “Many German companies have been active in Russia for decades and are responsible for around 280,000 employees there,” Michael Harms, managing director of the Eastern Committee for German Business, told the German Press Agency.

“At the moment, however, there is no reliable information on this, and we are not yet aware of any corresponding bills. For this reason, we are not currently making any recommendations for our companies, but we are carefully monitoring developments.”

Due to the Russian war of aggression in Ukraine, numerous companies, including German ones, have stopped doing business in Russia. The Russian government has threatened to expropriate international companies that suspend operations in the country. Therefore, the Russian government is working on steps to initiate the bankruptcy of companies in Russia and then the nationalization of property, said the deputy head of the Russian Security Council, Dmitry Medvedev.

The Federal Association of Small and Medium Enterprises was also concerned. Federal Managing Director Markus Jerger said: “The announcements by the Russian government that it will nationalize the ownership of foreign companies that are suspending their business in the country due to a fictitious bankruptcy as part of an abbreviated insolvency procedure concerns us very much as an association. commercial”. .”

First, it can be assumed that companies that do not withdraw from the country will be able to continue doing business. “However, we strongly recommend that all German companies consult law firms operating in Russia to prepare for all eventualities. The federal government is asked to represent the interests of German companies operating in Russia before the Russian government.”

As reported at the request of the Association of German Chambers of Industry and Commerce (DIHK), around 3,650 German companies were still active in Russia before the outbreak of the Ukrainian war. Even before the outbreak of the war, companies with a connection to Russia that were active in Germany had given a very negative response about the development of economic relations, according to information from the German-Russian Chamber of Commerce Abroad.

Half of the German companies with economic ties to Russia had already negatively assessed the situation and prospects of their respective businesses at this time. (dpa)

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