Sanctions Costs: German Exports To Russia Collapse, "Risk 50,000 Jobs"

Tyler Durden's picture




 

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, ”

And now... (as Bloomberg notes),

Export of German-made machine spare parts in particular hit by sanctions due to possible dual-use nature of goods, BDI industry group’s East European Committee said today in e-mailed statement.

 

Sanctions also impacting German exports to states linked to Russia via excise agreements: 1H exports to Belarus drop 21%

 

2014 German exports to Russia may drop by as much as 25%, pose risk to 50,000 German jobs

*  *  *
Of course, this should come as no surprise... Is it time to ink that gas-for-land deal?

 

*  *  *

As Reuters reports,

German exports to Russia plunged in the first half of 2014, led by a sharp fall in car and machinery shipments, amid an escalating standoff between the West and Moscow over Ukraine.

 

The value of German shipments to Russia fell 15.5 percent to 15.3 billion euros in the first six months of the year, data from the Statistics Office showed. That was a sharper drop than in the first quarter of the year, when exports to Russia dropped by 13 percent.

 

German factories making cars and car parts saw the value of goods sent to Russia slump 24.4 percent, while the fall in machinery exports was 18.7 percent.

 

Exports of cars and car parts make up around a fifth of German exports to Russia and the industry could get a further battering in the coming months if, as a media reports suggest, Russia tightens retaliatory sanctions against Western nations to include a ban on car imports.

And the most ironic...

German imports from Russia climbed by 2.1 percent to around 20.3 billion euros in the first half of the year, driven by an increase in German purchases of coke and refined petroleum products.

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Mon, 08/25/2014 - 17:05 | 5142052 NOTaREALmerican
NOTaREALmerican's picture

This should be good for stocks. 

Mon, 08/25/2014 - 17:08 | 5142059 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

When is Germany going to break with our dear leader when they realize they are the ones getting screwed by sanctions?

Mon, 08/25/2014 - 17:16 | 5142094 Keyser
Keyser's picture

Nothing like cutting off your nose to spite your face... 

Mon, 08/25/2014 - 17:19 | 5142104 Publicus
Publicus's picture

Checkmate!

Mon, 08/25/2014 - 17:29 | 5142153 TungstenBars
TungstenBars's picture

That's what that rat meant by "Fuck the EU"

Mon, 08/25/2014 - 17:53 | 5142260 uno
uno's picture

"Fuck Germany" --- Federal Reserve concerning Gernamy gold

Mon, 08/25/2014 - 17:57 | 5142267 knukles
knukles's picture

"I don't want you to talk, Mr Bond, I want you to die"
     -Goldfinger (theory of cutting your nuts off in spite of....)

Mon, 08/25/2014 - 19:10 | 5142519 CheapBastard
CheapBastard's picture

Uber Haussemarkt!

Mon, 08/25/2014 - 19:15 | 5142537 Bingo Hammer
Bingo Hammer's picture

"Checkmate!"???

Nah, not by a long shot. I think the whole situation is a long way from that part of the game (& Publicus, I think that's the 5th time you've said the same innane thing on ZH threads...sorry it had to be said)

Mon, 08/25/2014 - 19:58 | 5142697 max2205
max2205's picture

War is for profits....Sanctions is for losers

Mon, 08/25/2014 - 17:18 | 5142095 the phantom
the phantom's picture

Achhh, meine arschloch!!!!

Mon, 08/25/2014 - 17:27 | 5142139 BlindMonkey
BlindMonkey's picture

There was some world leader talking about boomerangs not too long ago. Can't recall exactly who that was though....

Mon, 08/25/2014 - 17:33 | 5142161 Escrava Isaura
Escrava Isaura's picture

Vampyroteuthis ...

Your answer is NEVER.

Germany is a European subsidiary of US corporatocracy!

Mon, 08/25/2014 - 17:49 | 5142235 11b40
11b40's picture

I think you are wrong, but we will soon know.  Either Merkel bends, or her party will get replaced in the next election.  The Germans are a fairly pragmatic people, and with every passing day more of them realize they are the ones getting screwed.....as do more of their EU neighbors.

Autumn comes early in industrial Europe.

Mon, 08/25/2014 - 18:46 | 5142447 Escrava Isaura
Escrava Isaura's picture

11b40,

That 'Never' is open for question, of course!

Anyway, the post below should shed some light on this matter.

By Dubaibanker

Germany is already on the 'other' side. 

Bosch and Siemens have issued yuan bonds instead of EUR. This was perhaps the first German bond this year.

Germany will open the first hospital EVER, 100% foreign owned in China. http://www.chinamoneynetwork.com/2014/07/23/shanghai-ftz-to-welcome-mainlands-first-foreign-owned-hospital

Chinese are even supporting the German football team. As they said, China has 100m German fans which is more than the entire population of Germany :)

http://www.dw.de/chinas-football-fans-stayed-true-to-germany-in-world-cu...

Merkel just returned from China and she signed some agreements on auto and aviation like 2 new VW plants in China and buying 123 helicopters as well as financial cooperation. A new silk road is already under formation. : http://thediplomat.com/2014/07/china-and-germanys-special-relationship/

Frankfurt was just selected a yuan trading hub, even prior to London or Geneva, which says a lot.

There is no BRICS. BRICS is a joke.

There is only China which is important in the BRICS. The rest are all passengers, and India is the worst and should be thrown out before it splits the rest or causes its own decline to influence the others.

High level financial agreements have already been started after the recent trip this month between Germany and China: http://usa.chinadaily.com.cn/epaper/2014-07/08/content_17669307.htm

Air China and Lufthansa signed a deal too with potentially a JV in the future: http://www.marketwatch.com/story/lufthansa-air-china-deal-paves-way-to-j...

German trade is already more than EUR 67bn last year.

France may piggy back along with Germany else France has no chance because it is becoming weaker every year. Although China has signed some deals earlier this year with French companies. The unemployment and leftist issues are too much in France plus their banks are weak except for BNP.

http://www.zerohedge.com/news/2014-07-23/putin-recalls-state-duma-vacation-planning-something-ukraine-situation#comment-4993822

Tue, 08/26/2014 - 01:50 | 5143785 king leon
king leon's picture

Germany is already on the 'other' side.

China's special relationship  is with Russia, China knows that the US is in the process of picking off countries in it's quest for world domination, now it's the turn of Russia for special treatment .China and Russia are strong together but if Russia were to fall then China is finished that is why BRICS is a big weapon to use against the West. China will welcome trade with Germany but nothing gets in the way of self preservation.    

Tue, 08/26/2014 - 03:53 | 5143874 Oracle 911
Oracle 911's picture

Yep, the BRICS is mainly about the survival of its members.

Mon, 08/25/2014 - 18:38 | 5142416 Abitdodgie
Abitdodgie's picture

Germany cannot do anything about what is happening to them because America owns Germany as they are under our total control since  WW11, if we want all thier money we will take it ,they are just a slave colony.

Tue, 08/26/2014 - 02:46 | 5143827 Pinstripe
Pinstripe's picture

As long Germany remains US occupied? Never.

Mon, 08/25/2014 - 17:09 | 5142060 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Dupe

Mon, 08/25/2014 - 17:08 | 5142062 thethirdcoast
thethirdcoast's picture

BTFD!

Mon, 08/25/2014 - 17:10 | 5142067 dirtyfiles
dirtyfiles's picture

Karma is a....

Tue, 08/26/2014 - 03:44 | 5143871 Oracle 911
Oracle 911's picture

...Merkel, definitively Merkel.

Mon, 08/25/2014 - 17:11 | 5142068 Truffle_Shuffle
Truffle_Shuffle's picture

Quick...we must prop the drop!

Mon, 08/25/2014 - 17:13 | 5142077 souljaboy
souljaboy's picture

50,000? Is that a lot?

Mon, 08/25/2014 - 17:17 | 5142100 kowalli
kowalli's picture

multiplay by family members and etc...

Mon, 08/25/2014 - 17:37 | 5142178 KickIce
KickIce's picture

One is a lot if you're the one getting axed.

Mon, 08/25/2014 - 17:38 | 5142180 FuzzyDunlop21
FuzzyDunlop21's picture

Its about equal to one Dow Chemical

Mon, 08/25/2014 - 17:42 | 5142198 ThroxxOfVron
ThroxxOfVron's picture

"Let us give this another year before we reach a verdict."

Mon, 08/25/2014 - 17:15 | 5142082 ebworthen
ebworthen's picture

Someone linked this on another post; it is worth the watch. 

Interview with Sergei Glaziev - Advisor to President Putin:

https://www.youtube.com/watch?v=cikvqdMRTTA

(I muted it and read the subtitles.)

Yes, he discusses American hegemony.

Mon, 08/25/2014 - 19:30 | 5142596 acetinker
acetinker's picture

It saddens me that NO ONE in American politics inspires me with a sense of intelligent, contemplative and outright forthrightness as does Mr. Glaziev.  For that matter, same goes for Putin and Lavrov.  These men say what they mean, and mean what they say.

In contrast, our politicians have mastered the art of saying many words (stringing together sound-bite worthy platitudes) without conveying a single coherent thought.

Mon, 08/25/2014 - 20:46 | 5142875 TungstenBars
TungstenBars's picture

I doubt most Americans could follow, or even understand, what those true leaders are saying. Americans have been devolved into only understanding emotionally packed short catch phrases. Anything with a remote sense of logic or analysis is far too high above their heads. 

Tue, 08/26/2014 - 06:55 | 5144037 acetinker
acetinker's picture

dup

Tue, 08/26/2014 - 06:56 | 5144040 acetinker
acetinker's picture

It's not that they lack the mental capacity, TB- although in some cases I have to agree.  What's frustrating is the number of people who are perfectly capable, but don't want to know.

Mon, 08/25/2014 - 17:23 | 5142121 tony wilson
tony wilson's picture

good

how many usa bases in germany

is ramstein base not as big as a small town with cinema drive movies,dunken donuts and macca d.

 

the fucking ball less krauts gave the insane sataninic state of israerl 5 fucking nuclear submarines for free, still paying the rabbi compensation for rothschild hitler

for fuck sake these krauts are fucking slaves.

 

apart from that german engineering and optics are suberb

Mon, 08/25/2014 - 17:24 | 5142130 kowalli
kowalli's picture

how many usa bases in germany - 3

Mon, 08/25/2014 - 17:44 | 5142205 tony wilson
tony wilson's picture

how many german bases in usa usa?

Mon, 08/25/2014 - 18:39 | 5142417 kowalli
kowalli's picture

0

Mon, 08/25/2014 - 17:29 | 5142152 NOTaREALmerican
NOTaREALmerican's picture

General Jack D. Ripper: Were you ever a prisoner of war?

Group Capt. Lionel Mandrake: Well... yes I was, matter of fact, Jack. I was.

General Jack D. Ripper: Did they torture you?

Group Capt. Lionel Mandrake: Uh, yes they did. I was tortured by the Japanese. Jack, if you must know; not a pretty story.

General Jack D. Ripper: Well, what happened?

Group Capt. Lionel Mandrake: Oh, well, I don't know, Jack, difficult to think of under these conditions; but, well... what happened was they got me on the old Rangoon-Ichinawa railway. I was laying train lines for the bloody Japanese puff-puff's.

General Jack D. Ripper: No, I mean when they tortured you. Did you talk?

Group Capt. Lionel Mandrake: Ah, oh, no... well, I don't think they wanted me to talk really. I don't think they wanted me to say anything. It was just their way of having a bit of fun, the swines. Strange thing is they make such bloody good cameras.

 

Mon, 08/25/2014 - 17:30 | 5142154 BlindMonkey
BlindMonkey's picture

Their porn has a certain funk to it too.

Mon, 08/25/2014 - 17:49 | 5142233 tony wilson
tony wilson's picture

herr merkel hot hot pool porn

 

https://www.youtube.com/watch?v=sv-0XjrBVT0

Mon, 08/25/2014 - 17:50 | 5142240 BlindMonkey
BlindMonkey's picture

God, I am not sure I want to click on the link...

Mon, 08/25/2014 - 17:51 | 5142249 BlindMonkey
BlindMonkey's picture

Oh, for the love of God....

Mon, 08/25/2014 - 18:45 | 5142446 Winston Churchill
Winston Churchill's picture

Get Captain Ahab, stat.

Mon, 08/25/2014 - 17:26 | 5142141 NOTaREALmerican
NOTaREALmerican's picture

Hey Merkel,  who'z yer daddy?

Mon, 08/25/2014 - 17:27 | 5142143 q99x2
q99x2's picture

Time to get the queen in a headlock.

Mon, 08/25/2014 - 17:28 | 5142146 ToNYC
ToNYC's picture

"If it weren't for Unintended Consequences, I'd have no consequences at all"

Mon, 08/25/2014 - 17:28 | 5142147 HamRove
HamRove's picture

I thought Germany went "all in" on sanctions because they liked getting bent over a desk, then penetrated and crapped on.

Isn't that a German thing? 

self degradation is a German pastime if I'm not mistaken 

Mon, 08/25/2014 - 17:30 | 5142155 Fuku Ben
Fuku Ben's picture

Global collapse on schedule and progressing nicely

Mon, 08/25/2014 - 17:33 | 5142163 trader1
trader1's picture

they knew sanctions would only be temporary.

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