Since February, the sanctions measures against the Russian Federation have developed dynamically. Large parts of the Russian economy are exposed to their effects. Even where this would be legally possible, it is increasingly unprofitable for German companies to remain in Russia. Policy-makers and the business community should prepare for the EU-Russia embargo to remain in force for decades.

The German economy is globally interlinked – also with trading partners in politically difficult states. The interdependence of Germany and Europe requires a sometimes-difficult balancing act. At the same time, German industry makes its weight felt for sustainably conserving our planet's natural resources and the rule of law. The BDI, therefore, has started a discussion about guiding principles for interdependence.

The European Commission has commenced its work on developing an instrument to deter and counteract coercive actions from third countries (ACI – Anti-Coercion-Instrument). The Federation of German Industries points to what a future ACI should look like. It should be a decidedly strategic instrument that the European Union (EU) deploys as a last resort in reacting to geoeconomic pressure.

Since 2018, US-export controls are geared to support the country’s industrial policy. This damages global value chains and hurts the transatlantic marketplace. The systemic challenge posed by China has triggered this development. In concert with its European partners, there is much the incoming US-Administration can accomplish. Due to the challenge China poses, a return to the status quo ante in export controls is impossible.

In 2016, the EU started a process to reform its dual-use regulation. The goal is to limit the availability of so-called information and communications technologies (ICT) in regions where these could be used to violate fundamental human rights. The Federation of German Industries (BDI) expressly supports this goal and has again positioned itself on the issue in October 2020. BDI calls for an EU-autonomous list for certain ICT-goods.

Although the export restrictions at the beginning of the Covid-19 pandemic were challenging for companies, Renate Becker-Arnold, chairwoman of the BDI Working Group on Export Controls, praises the pragmatic way in which German export control authorities worked. In this interview, she also discusses the extraterritorial controls and sanctions policy of the United States and the reform of the EU Dual-Use Regulation.