U.S. To Lose Economic Ground Under BRICS Pressure

Posted: June 6, 2015 in Economics

The real damage to the EU countries caused by the launch of anti-Russian sanctions is much more comprehensive than that estimated by the statistics, Folker Hellmeyer, chief economist of the German Bremer Landesbank told in an interview with Deutsche Wirtschafts Nachrichten.

“The slump in German export volume by 18 percent in 2014 and by 34 percent for the first two months of 2015 is just the tip of the iceberg,” he said. “There are much more of the side-effects.”

“European countries, like Finland and Austria, who have strong developing businesses in Russia, place fewer orders within Germany. Moreover, the European corporations evade sanctions and create high-efficient production facilities in Russia. We, therefore, lose this potential capital stock, which is the basis of our prosperity, and Russia wins.”

The relationship of trust between Russia and Germany and the EU is somewhat broken. And it will take years to rebuild it. As the result, such companies as Siemens and Alstom have lost major projects in Russia, he said. The potential damage not only for Germany but for the whole of the EU, therefore, is much more comprehensive than what is being shown by current figures.

Meanwhile, Moscow, Beijing and other BRICS countries are looking forward to building the largest projects of the modern history: the construction of new Eurasian infrastructure from Moscow to Vladivostok, in South China and India.

Full Story @ [Sputnik News]

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s