German businesses’ direct investments in the Russian economy totaled €1.3 billion in the nine months to September, according to the Russian-German Chamber of Commerce.

The volume of investment in the third quarter alone amounted to €700 million and offset the plunge seen from April through June, according to Bundesbank data, cited by the business lobby.

The Russian market offers good prospects for German corporations, along with high consumption potential, according to Rainer Seele, the president of the chamber.

Seele added that the drop in investments recorded in the second quarter was connected to the Covid-19 pandemic. Moreover, the amount of investment is also affected by the long-standing sanctions introduced by the European Union and the US as early as 2014.

According to Seele, German corporations are currently running several projects in Russia. Agricultural machinery manufacturer CLAAS is expanding production capacities in the Russian southern city of Krasnodar, while Knauf, a major producer of building materials and construction systems, invested €50 million in a new production line near St. Petersburg.

German retail chain of hypermarkets, Globus, also invested €50 million into expanding its presence in Russia.

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