from Wolf Street:
The elegant sanction spiral the US and the EU are imposing on Russia has not been, let’s say, welcome by German business tycoons. But they can’t fight it directly. They have to do it indirectly, by evoking dire consequences.
So, over the weekend, Daimler CEO Dieter Zetsche told the public that business in Russia had been booming, with sales still up 20% in the first half, “but now the momentum is going down.”
Even before the start of the Ukrainian fiasco, the Russian economy was in “a difficult phase,” and the sanctions leave it “further impaired,” he said. “This impacts the Russian car market and thus also Daimler.” Russia is a smallish but important market for Daimler, as is the case with many German companies – last year, it was the 13th largest destination for German exports. But car sales in Europe have been abysmal. And Daimler had been counting on Russia as one of the bright spots.
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