German industries struggle to replace Russian imports – survey


It is “not possible” to substitute supplies from Russia, Belarus and Ukraine for almost 14% of the country’s industrial enterprises, and for another 16% it is not economically viable, according to a investigation

German industrial companies find it “impossible” or “not economically viable” and “only partially possible” to replace imports from Russia, Belarus and Ukraine, which have stopped due to the conflict in Ukraine and the introduction of tough economic sanctions against Moscow and Minsk, an Ifo Institute poll has found.

When asked if they would be able to replace deliveries from these countries, 13.8% of German companies surveyed said that “it was not possible at all” according to the study released Tuesday by the Munich-based think tank.

Another 16.3% pointed out that finding other sources of supply was “not economically viable” for them.

And no less than 43.4% of companies admitted that replacing deliveries from Russia and its neighbors would be “only partially possible” with only 13.8% saying the situation will not cause them problems.

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The figures were even worse in the wholesale sector where 17.3% of companies insisted that it was impossible to do without sanctioned import items, and only 7.4% said that they would be able to quickly find new delivery sources, according to the survey.

“Changing sources of supply is a headache for many companies”, Ifo researcher Klaus Wohlrabe said, pointing out that “Supply chains and production processes that have worked well for years often cannot be revamped overnight.”

UN figures show that German imports from Russia amounted to nearly $30 billion last year. Germany’s Federal Statistical Office said they were up more than 54% from 2020.

Germany not only bought gas, oil and coal from Russia, but also raw materials like nickel, palladium, copper and chrome and many other items.

READ MORE: Germany specifies conditions for lifting sanctions against Russia

But those deliveries have been affected by the harsh sanctions the EU, US and some other countries imposed on Moscow after it launched its military operation in Ukraine in late February. The restrictions also saw the foreign assets of the Russian Central Bank and various other entities and individuals frozen, thus cutting Russia off from dollar and euro-dominated currency markets, and a wide range of foreign businesses ceased trading. do business with the country.


RT

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