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The economic relations between Germany and Russia
Presentation · February 2018
DOI: 10.13140/RG.2.2.16435.94248
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The economic relations between Germany and Russia
1) Foundations for economic co-operation
2) Foreign trade
3) Foreign direct investment
4) Foreign tourism
© Kari Liuhto
Professor, Director
Pan-European Institute
University of Turku, Finland
Turku, 9.2.2018,
Email: Kari.Liuhto@utu.fi
Ups-and-downs in common history: Catherine the Great, born in Stettin Prussia, enlarged the Russian Empire as its
Empress in the last decades of the 18th century; some 150 years later, Nazi Germany aimed at invading the Soviet Union;
50 years later special German-Russian friendship was formed during chancellorship of Gerhard Schröder (1998-2005).
1) Foundations for economic co-operation
1
4000
3467
3500
0,9
0,8
3000
0,7
2500
0,6
2000
0,5
0,4
1500
1281
0,3
1000
0,2
500
80,6
0,1
142,3
0
0
Population (million - July 2017)
Germany
0
GDP ($ billion - 2016)
Russia
0
0
#VIITTAUS!
#VIITTAUS!
1.2 million people with a Russian background inhabited Germany in 2016. Nearly 250,000 Russian
citizens lived in Germany in the end of 2016. Relatively large historic minority of Germans lives in Russia.
Sources:
CIA; WTO;
Statistisches
Bundesamt
1) Fossil fuel balance of Germany and Russia in 2016
600
600
500
500
400
400
300
300
200
200
113
81
100
391
193
148
87
100
OIL (million tonnes) NATURAL GAS (billion COAL (million
cubic meters)
tonnes oil
equivalent)
Consumption
Production
Consumption
Production
Consumption
Production
Consumption
Production
Consumption
Production
0
Consumption
Production
0
40
7
0
75
579
554
OIL (million tonnes) NATURAL GAS (billion COAL (million
cubic meters)
tonnes oil
equivalent)
Germany needs to import a substantial amount of fossil fuels, and its energy imports will grow when
Germany closes its nuclear power plants (NPPs) by 2022. These NPPs accounted for 6% of the country’s
total energy consumption in 2016. Correspondingly, Russia is the world’s largest energy exporter. Germany
imported from Russia 31 million tonnes of oil in 2013 (35% of total), 46 billion cubic meters of natural gas in
2016 (46% of total), and roughly 15 million tonnes of hard coal in 2013 (29% of total).
Sources:
British
Petroleum;
Clean
Energy Wire
1) Oil and natural gas infrastructure of Germany
The total annual capacity of Nord Stream 1 and Nord Stream 2 will be 110 billion cubic meters. Nord Stream 1
started to operate in 2012 and Nord Stream 2 is planned to be opened by the end of 2019.
Source:
IEA
2) Foreign trade of Germany and Russia in 2016 ($ billion)
1600
1400
1340
1200
1055
1000
800
600
400
282
191
200
0
Exports
Imports
Germany
Russia
Germany is the world’s 3rd largest trader after China and the USA.
Sources:
WTO; CIA
2) Geographical distribution of Germany’s foreign trade
in 2016
Country
Exports
($ billion)
Share
(%)
Country
Imports
($ billion)
Share
(%)
World
1341
100
World
1061
100
1. United States
119
8.9
1. China
105
9.9
2. France
111
8.3
2. Netherlands
92
8.7
3. United Kingdom
94
7.0
3. France
73
6.9
4. Netherlands
87
6.5
4. United States
66
6.2
5. China
85
6.4
5. Italy
57
5.4
6. Italy
67
5.0
6. Poland
51
4.9
7. Austria
65
4.9
7. Switzerland
50
4.7
8. Poland
59
4.4
8. Czech Republic
47
4.4
9. Switzerland
55
4.1
9. Austria
43
4.0
10. Belgium
46
3.4
10. Belgium
42
4.0
Russia covered 1.8% of Germany’s exports (value: $24 bn)
and 2.8% of imports (value: $29 bn) in 2016.
Source: World
Integrated Trade
Solutions by
World Bank
2) The development of the German-Russian trade
The value of the German-Russian trade
($ billion)
Germany’s share in Russia’s foreign trade
(%)
80
10
70
60
50
9
40
30
20
10
8
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
(1-11)
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
German-Russian trade declined by $ 35 billion since 2013. Decline can mainly be explained by lower energy
prices and lower buying power of Russians. Sanctions are not main reason for drop. Germany is Russia’s 2nd
largest trade partner after China. In 2016, Germany had a trade deficit of $2 billion in its trade with Russia.
Source:
Customs
Russia
2) The structure of German-Russian trade in 2015
Germany’s exports to Russia:
Germany’s imports from Russia:
Machinery, nuclear reactors and boilers (25%)
Mineral fuels, i.e. oil and natural gas (79%)
Vehicles (16%)
Copper (4%)
Electrical and electronic equipment (9%)
Aluminium (2%)
Pharmaceutical products (7%)
Iron and steel (2%)
Plastics (5%)
Wood (2%)
Optical, photo, technical and medical apparatus (5%)
Pearls, precious stones and metals (1%)
Commodities not specified elsewhere (3%)
Inorganic chemicals and precious metal compounds (1%)
Miscellaneous chemical products (3%)
Machinery, nuclear reactors and boilers (1%)
Perfumes and cosmetics (2%)
Rubber (1%)
Iron and steel (2%)
Nickel (1%)
Organic chemicals (2%)
Fertilizers (1%)
Paper and pulp (2%)
Other base metals (1%)
Tanning, dyeing extracts and tannins (1%)
Rubber (1%)
Source: Ministry of Economic
Development of Russia
3) Germany’s total direct investment in Russia,
and Russia’s total direct investment in Germany ($ billion)
20
18,9
18
17
16,3
16
13,7
14
13
12
9,6
10
9,6
9,3
7,6
8
7,3
6
4
2
0
2013
2014
German FDI in Russia
2015
2016
2017 (June)
Russian FDI in Germany
Some 5,200 companies with German capital investment operated in Russia in 2016. Germany
covers 4% of all foreign investments Russia has received and 2% of Russian investments abroad
have landed in Germany as of June 2017. Correspondingly, 1% of German investment overseas have
landed in Russia and Russians covered 0.5% of foreign investment Germany has received by end of
2015. Russian state-owned enterprise, Gazprom, is probably Russia’s main investors in Germany.
Sources: Bank of
Russia; Deutsche
Bundesbank; Federal
Foreign Office of
Germany in Russia
4) Overnight stays by the Russians in Germany (million)
3
2,6
2,4
2,5
2
1,7
1,5
1,5
1
0,5
0
2013
2014
2015
In 2013, the Russians accounted for 3.6% of the foreigners’ overnight stays in Germany. In 2016,
the respective share was 1.9%. Correspondingly, the Germans did nearly 0.6 million travels to
Russia, covering 2% of all the foreigners’ travels in Russia in 2016.
View publication stats
2016
Sources: Statistiches
Bundesamt; Federal
Agency for Tourism of
Russia