Financial and business news from Bulgaria

German companies have shrunk their investments in Russia

Recently, German firms have been investing less in Russia because they have withdrawn significant capital amid a decline in business activity triggered by the new coronavirus pandemic, DPA reported.
The German-Russian Chamber of Commerce (GRTP) announced today that, compared to the boom of 2018 and 2019, net investments this year have shrunk strongly. The Chamber added that in the second quarter the smallest volume of German investments in Russia was reported in the last 20 years, BTA reported.

Speculation about a Russian invasion of Belarus and the poisoning of Russian opposition leader Alexei Navalny further worsened the investment climate, commented GRTP President Matthias Shep.

Germany's Bundesbank announced that companies withdrew 1.1 billion euros from Russia during the March-June period.

According to GRTP data, however, total investment in the first half of the year increased by nearly 700 million euros due to the good start of the year. Many companies expected to have a good business year with Russia when the coronavirus came, said Shep.

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