Economic War with Russia: A High Price for German Business

[unhappycamper]

http://www.spiegel.de/international/europe/germany-to-play-central-but-expensive-role-in-sanctions-against-russia-a-959019.html



The EU has imposed new sanctions to prevent Vladimir Putin from further escalating the crisis in Ukraine. Berlin has played a leading role in the punitive actions, despite protests from the German business community. There's no turning back for Merkel.

Economic War with Russia: A High Price for German Business
By SPIEGEL Staff
March 17, 2014 – 03:34 PM

Some of the guests attending a ball organized by German companies high above the rooftops of Moscow brought along machine guns and pistols. It was a James Bond-themed evening and the weapons in question were, of course, toys. The party also featured a scantily clad woman slithering in a giant martini glass.

With champagne and cigars, the owners of mid-sized companies toasted the dazzling profits they earn in Russia. At the time, everything all was still rosy in the world of German-Russian business relations. The event took place two Saturdays ago.

Just days later, there is no longer much reason to celebrate. Relations between the West and Russia have sunk to the lowest levels seen since the Cold War because of the Ukraine crisis. The leaders in Moscow are preparing to take over the Crimean Peninsula -- a development that came an important step closer to reality on Sunday after 97 percent of those who turned out for a referendum voted in favor of joining the Russian Federation. The West is responding to the vote by imposing new sanctions on Russia, including the freezing of bank accounts and travel restrictions.

Germany has taken a leadership role in those efforts -- a role that Berlin has sought to claim for itself since the early days of the unrest in Kiev. At the beginning of the year, Foreign Minister Frank-Walter Steinmeier pledged that Germany would become more active in its foreign policy, and the current initiative is one manifestation of that aspiration.