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oping at a slower pace. This can be concluded from the fact that Russia is less
important for German exports, not only than the Western European countries
but also than China or some Central European states such as Poland and the
Czech Republic. Although the largest traditional branches of German industry
and the biggest German enterprises have been able to develop their business
activities on the Russian market, the small and medium companies’ sector has
faced numerous problems in conducting business in Russia. The shape of the
relationship between Germany and Russia depends not only on economic factors
but also on issues of security and political cooperation. The most important
reasons for Germany maintaining its close relations with Russia include
Germany’s recognition of Russia’s geopolitical position and its role in global issues
such as energy security and the political stability of the post-Soviet states
and of the region located on the boundary between Europe and Asia.
Germany interpreted the election of Dmitry Medvedev as Russia’s president as
the fulfilment of its expectations concerning the slowly progressing democratisation
process in Russia, which it hoped would be accompanied by growing
economic liberalisation and the improvement of conditions for German companies
conducting their business in Russia. Vladimir Putin’s return to power
shocked the German elites, who could not come to terms with the fact that no
major political reforms broadening the civil freedoms could be expected in
Russia. Since that time, certain tensions in the German-Russian relations have
been observed, although these have had no particular impact on economic relations.
In recent years Russia’s structural problems have been emphasised more
frequently; these are connected with the risk of destabilisation of the political
system and of the Russian economy’s excessive dependence on the exports of
energy carriers. German politicians have consistently criticised violations of
democratic standards in Russia. It seems, however, that due to the long history
of political and economic cooperation, and the presence in both Germany
and in Russia of numerous groups that are interested in bilateral cooperation,
maintaining good economic relations is possible even in a situation of political
tension. The only visible symptom of the diminishing trust of German entrepreneurs
in the Russian market has been the reduction in the scale of new German
investments. The 2009 decline of the Russian market and the sudden reduction
in the sales of products manufactured by German companies in Russia
have made entrepreneurs aware of the fact that the Russian market is strongly
dependent on the economic situation in Europe, and will not offer protection
from stagnation in the Eurozone. Investments carried out in Russia will not
protect a business against the recession in Europe, as the economic situation in
Russia is a reflection of the economic growth observed in the European Union,
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