US-Russia trade flourishes despite sanctions

Photo: DPA

Photo: DPA 

2015/05/31 • News, Russia

The sanctions against Russia are causing significant problems for European companies – by contrast, their American competitors are continuing to do good business. According to Russian statistics, trade between the United States and Russia grew in the prior year by around 6%. By contrast, trade with countries in the European Union (EU) contracted by almost 10%. In the first two months of 2015, trade between the EU and Russia collapsed by a third. Der SPIEGEL (German news magazine – Ed.) reported this in its most recent edition.

“The Americans first exerted a great amount of pressure on Europe to enact tough sanctions,” said Frank Schiff, managing director of the Association of European Business in Moscow. “The fact that they themselves have expanded trade with Russia in the previous year is remarkable.”

At the beginning of the week, the Texas-based company Bell signed a licensing agreement with a Russian helicopter manufacturer, despite the fact that the company belongs to the empire of state-owned Rostec (Russian defense conglomerate – Ed.), which is run by Putin confidante Sergei Chemezov. Both Rostec and Chemezov are on the American sanctions list.

Boeing is also undeterred by the sanctions: The aircraft manufacturer continues to operate a development center in the Russian capital with 1,200 employees.

At the same time, Siemens was left out of a billion-dollar contract for modern train units and the construction of a high-speed rail line from Moscow to the booming provincial capital of Kazan. “Before the Ukraine conflict, the Germans would have gotten the nod,” explained an industry insider. Now a Chinese state-owned company has reaped the benefits.

Translated by: A.K.
Source: Spiegel Online

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  • Nancy Turner

    The sanctions are absolutely necessary. If these statistics are true, then EU and the USA need to choose other or more sanctions. It is really the EU tha is reluctant to sanction Russia. Maybe USA could expand their sanctions to coincide with the EU sanctions and the EU could levy additional sanctions. One BIG sanction the U.S. levied was on technology! Russia is dependent on US technology. Have you noticed they can’t get a space craft into space recently? The EU is the one holding out on sanctions! In fact, Obama recently told Merkel more sanction need to be levied because the Minsk agreement is being ignored by Russia and people are dying and suffering in Ukraine because of Russia.

  • John Shirley

    If these figures are accurate, and I’m not questioning that they aren’t then as a US citizen I am very dissapointed to say the least.
    The EU should tell my government to “put their money where their mouth is”
    To uproot Putins dictatorial regime is going to take extreme actions and sacrifices not only on the part of the EU members nations but also by the US.
    As i read this article I could almost detect the frustration and disappointment on the part of the author. but he has a valid point and legitimate reason to feel the way he does.
    My advice to Euromaidan Press is to continue to expose my countries failures in this matter, continue to write more articles exposing the injustices relating to the sanctions, and if possible get some of these articles published by the most circulated US news agencies possible.

    • Brent

      I agree with you, but….these are Russian statistics. I never trust Russian statistics without some American source to compare. Would love to see that because this may just be a Russian source wanting to coerce Europe into dropping the sanctions they have imposed by leaking this story. I have to be honest I don’t know all the specifics of the sanctions imposed by the U.S. compared to the EU, but I had always read the EU sanctions were weaker (Iosif Kobzan?!?!?).

      But I also agree more must be done to reign in Russia, including much tougher sanctions as those imposed so far have been a joke. I think Russia is a terrorist state and should be treated as such. They also provide backing and support to most other ‘rogue’ nations the U.S. is endlessly having squabbles with (North Korea, Iran, Syria and now they have involvement in a proxy manner with Yemen). I’m not sure enough can be done to uproot Putin, but would love to see the Russians who love him start realizing what he is doing to their country and their children’s future, and turn on him and make him accountable.

  • Dean Venture

    A big red flag right at the start – “According to Russian statistics”. The Russians would love to have us think the sanctions aren’t a problem and to drive a wedge between the EU and the US. Russian statistics are probably as realistic as Russian news organizations. You would have to look for them in the ‘fiction’ section.

  • Gryzelda Wrr, Polish Emirates

    Hey, hey, US! Have you got a government there? Or have you changed your name to USA Ltd?