Retrospective on Adrienne Shannon, “German Investment in Russia” from The Continuing Challenges of German Reunification Perspectives on Business and Economics, Volume 16, 1998 Adrienne (Shannon) Thompson currently lives in the Washington D.C. area. (Shannon) Thompson analyzed Germany’s investments in Russia and the two nations’ deep economic and political ties. She then assessed Germany’s path forward in relations with Russia. How has German business with Russia shifted since 1998? At the turn of the 21st century, Germany and Russia had a stable business and economic relationship. They were large trading partners and Germany was heavily investing in Russia’s energy projects such as the construction of the Nord Stream pipeline, which delivers natural gas from Russia to Germany. Many business ties between the two countries have been severed since the start of the Russia-Ukraine conflict. Germany has been a main driver of sanctions against Russia. “German history reveals how important it is, amid all of this, to expose and punish those responsible for crimes against humanity, to dismantle dictatorial institutions, and reflect deeply as a nation on one's own guilt” (Baunov, 2023). Because of EU and German sanctions, many German businesses with significant investments in Russia, such as Volkswagen, have pulled out entirely. The Coalition for Ukraine has been tracking over one thousand German companies with branches in Russia. They have found at least 953 that have or are pulling out (Algard, 2024). Does Germany still rely on Russia’s natural resources and energy? Germany has relied heavily on Russia’s abundant natural resources, including coal, oil, timber, and precious metals. Russia has been Germany’s primary source of natural resource imports for decades. The first pipeline connecting Siberia to Germany was completed in the early 1980s. Germany previously imported half of its natural gas and a third of its oil from Russia. However, trade between the two countries has become a topic of debate since the start of the Russia-Ukraine conflict in 2022. Since September 2022, there has been no direct natural gas imports from Russia to Germany (Germany…, 2024). Sanctions against Russia have led Germany to turn to other sources for energy and natural resources. “Norway replaced Russia as Germany's top gas supplier in 2022, accounting for a third of imports. Belgium and the Netherlands also helped plug the gap” (Eckert & Steitz, 2023). Since the start of the Russia-Ukraine conflict, Germany has significantly reduced their reliance on Russia for natural resources. References Algard, A. (2024, September). Corporations supporting Ukraine: An accounting of who’s pulling out and who’s continuing business with Russia. Coalition for Ukraine. Baunov, A. (2023, June 7). Russia,“The West” and Germany - Taking stock and looking ahead. Carnegie Politika. Eckert, V. & Steitz, C. (2023, January 20). Explainer: Where does Germany stand on gas supply? Reuters. Germany natural gas imports from Russia. (2024, September 17). Trading Economics. Retrospective by Randi Conroy ‘25 Finance, with mass communication minor . Martindale Retrospectives 6 November 2024
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