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A Study of the German-Russian Economic Relations and How It Was Impacted by the EU Sanctions

Student: Julien mathias Keyser

Supervisor: Alexander Porshnev

Faculty: Faculty of Management

Educational Programme: Global Business (Master)

Year of Graduation: 2018

This research is the second part of a comparative study between the French-Russian and the German-Russian economic activity in Russia. It invistigates how the sanctions imposed by the European Union upon the Russian Federation impacted the bilateral relations of France and Germany with Russia. The method used to measure the evolution of these relations consists of sector ananlysis of the most important and strategic fields of activities of German and French business actors in Russia by gathering, articulating and interpreting a wide range of public information on the subject. The respective sector analysis are compared and an overall to identify the analogies and the contrasts between the two relations. The first year’s study, “Despite everything: doing business in Russia through French eyes” established that the historical relation between France and Russia is deep-routed but has been challenged by the European sanction policy directed towards Russia, as well as by the Russian counter sanctions. The results of the first research showed that in terms of economic exchanges, the relation is strengthening and new business opportunities for French company are emerging by these sanctions. This study shows that these results can be transposed to the German-Russian relation. Indeed, the negative impact of the sanctions, are only short-termed and after a period of drawback, the German presence in Russia is coming out stronger. Plus, the results of this research show that in the sectors analysed, the German trade and investments in Russia are quantitatively superior to the French trade. So much so that German and Russian interests are punctually intertwined. The contrast between the two bilateral relations also lies in the cultural and diplomatic dimension of the relations. Those are deep-routed in both cases, but further maintained and developed jointly by the Russian and German sides.

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