German businesses return to economic forum in St. Petersburg after years

After a multi-year hiatus due to Russia's war against Ukraine, German business representatives are officially attending the St. Petersburg International Economic Forum (SPIEF) once again. This marks a significant shift in engagement with Russia for German industry.

Matthias Schepp, Chairman of the German-Russian Chamber of Commerce, stated on Sunday, "Especially with a view to the post-ceasefire period, we want to maintain economic ties with Russia, like other major Western countries, and protect German assets in Russia worth more than 100 billion euros." He cautioned against allowing Asia to permanently take over Russia's large market and resources, noting that Chinese companies alone established 1,400 new enterprises in Russia in the first quarter of this year.

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Especially with a view to the post-ceasefire period, we want to maintain economic ties with Russia, like other major Western countries, and protect German assets in Russia worth more than 100 billion euros.

According to Chamber data, around 1,600 German companies continue to operate in Russia, generating approximately 20 billion euros in revenue last year. However, the volume of German-Russian trade fell below ten billion euros last year due to Western sanctions. Prior to the conflict in Ukraine, Germany was Russia's largest European trading partner.

The participation underscores a complex economic strategy for German businesses seeking to navigate sanctions while preserving investments and market access in Russia. The presence at SPIEF signals a continued, albeit cautious, engagement with the Russian economy.

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The West should not permanently leave Russia, its large market and raw materials, to Asia.