It’s “not possible” to substitute supplies from Russia, Belarus, and Ukraine for almost 14% of the country’s industrial companies, and for another 16% it’s not economically viable, a survey has found
German industry companies find it attractive “impossible”Or “not economically viable” “only partially possible”The poll of the Ifo Institute revealed that Ukraine, Belarus, and Russia were to be replaced by imports. This was due to the war in Ukraine as well as the introduction economic sanctions against Moscow and Minsk.
When asked if they’ll be able to substitute deliveries from those countries, 13.8% of the German companies polled said that “this was not possible at all,”According to Tuesday’s study by the Munich-based think tank.
Another 16.3% said that other sources were possible. “not economically viable”They are your best friends.
A staggering 43% of companies admitted that they would replace deliveries from Russia or its neighbours. “only partially possible,” with just 13.8% saying that the situation won’t cause them problems.
The numbers were even worse in the wholesale sector where 17.3% of firms insisted that coping without the sanctioned import items was impossible, and only 7.4% said that they’ll be able to swiftly find new sources of deliveries, according to the poll.
“Changing sources of supply is a headache for many companies,”Klaus Wohlrabe, Ifo researcher pointed out that “supply chains and production processes that have been tried and tested for years often cannot be reorganized overnight.”
UN data shows that Germany’s imports from Russia totaled almost $30 Billion last year. According to the German Federal Statistical Office, they rose by more than 54% compared with 2020.
Germany purchased not only oil, gas and coal from Russia. It also bought raw materials, such as copper, nickel and palladium.
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These deliveries were however affected by severe sanctions that Russia, the US and other countries placed on Moscow in response to its February military operations in Ukraine. Also, the Russian Central Bank’s foreign assets and other individuals were frozen. This effectively cut Russia off from dollar- and euros-dominated money markets and caused a multitude of businesses to stop doing business with Russia.