Knorr-Bremse has delivered a withering attack on the continued imposition of sanctions by the West on Russia, saying Germany alone has lost 50% of its exports to the country since their introduction.
The sanctions are as a result of what Western capitals view as Russian involvement in Eastern Ukraine and the annexation by Moscow of Crimea last year, with the resulting pinch on credit availability undoubtedly hitting hard.
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Russia is enduring exceptionally high interest rates and inflation, with a collapsing oil price and plunging rouble adding to a dramatic fall in consumer confidence, which has directly slashed automobile sales in the country.
And speaking at last week’s St Petersburg International Economic Forum (SPIEF) on the same stage as President Vladimir Putin, Knorr-Bremse owner and chairman, Heinz Hermann Thiele lambasted the West for hurting its own economies using the draconian sanctions as political levers.
“I was and still am, totally against the sanctions and from the very beginning by the way,” he told the packed audience at the Russian President’s Plenary address in St Petersburg.
“I am not the only one in Germany who has this position. I support the statement of President Putin – it is high time to stop these sanctions. I hope now everybody in Europe understands these sanctions have hurt Europe substantially.
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By GlobalData“If you look to the figures, within two years, 2014 and 2015, Germany has lost 50% of exports to Russia.”
A common theme of SPIEF was whether or not Russia would pivot to the East in a bid to counter the West’s economic blockade with Thiele noting his brakes component company had “extremely good business in China.”
Only last month Knorr-Bremse and Dongfeng started their joint venture in China to strengthen the German company’s profile in the commercial vehicle market.
Based in Shiyan in the Chinese province of Hubei, 1,000 km to the west of Shanghai, the new joint venture Knorr-Bremse DETC Commercial Vehicle Braking Technology (DETC), has a workforce of 460 employees.
“Russia turning to the East is to do something normal, quite normal,” added Thiele. “Even my company, we have strong connections with China and extremely good business. Why shouldn’t Russia do the same.
“We have boosted that need by applying sanctions – we must go away from that. Everybody should have the chance to make his decision where he finds the best partner for his specific business.
“We are supporting global development and I would like to add, peaceful, development, which is at this moment, not satisfactory at all.”
Sharing the same stage as Knorr-Bremse and President Putin, was the surprise visitor to
SPIEF of Greek Prime Minister, Alexis Tsipras, whose country also appears drawn to the East as its crumbling economy teeters on the edge of a Eurozone exit.
“People are asking why I am here [Russia] and not in Brussels,” said Tsipras. “The economic centre of the planet has shifted – there are new emerging forces that can play a role geopolitically.”
