The Russians Are Coming: Moscow Investors Go on Shopping Spree for German Companies

Russia – the world’s largest exporter of natural gas and the second largest exporter of oil – is collecting big profits as importing nations scramble for supplies. As a result Russians have the money to invest in foreign markets. “Russian investors have been traveling through Germany for months, buying up companies, eyeing almost every industry,” reports a team of writers with Spiegel Online. “They have bought shares in everything from cosmetics companies to fashion houses, construction companies and tourism groups.” Likewise, German firms invest in Russia. But as the foreign investment between the two nations evens out, the Germans express concerns about Russia purchasing advanced German technology at bargain rates as well as the Russian government’s influence over Russian firms. Germany has reacted with an amendment to the German Foreign Trade Act, as an obstacle for foreign investors hoping to acquire “strategically sensitive industries.” Any product in demand could carry the label of “strategically sensitive,” though, including oil and natural gas. Germany must act carefully so as not to invite retaliation. – YaleGlobal