German business has expressed concern about possible expropriations of international companies in Russia.

"Many German companies have been active in Russia for decades and are responsible for around 280,000 employees there," said Michael Harms, Managing Director of the Eastern Committee of German Business, the German Press Agency.

“At the moment, however, there is no reliable information on this, and we are not yet aware of any corresponding draft legislation.

For this reason, we are currently not making any recommendations for our companies, but are carefully monitoring developments.”

Because of the Russian war of aggression in Ukraine, numerous companies, including German ones, have stopped doing business in Russia.

The Russian government has threatened to expropriate international companies that suspend operations in the country.

The Russian government is therefore working on steps to initiate bankruptcy of the companies in Russia and then nationalization of the property, said Deputy Head of the Russian Security Council, Dmitry Medvedev.

More than 3600 German companies in Russia

The Federal Association of Small and Medium-Sized Businesses was also concerned.

Federal Managing Director Markus Jerger said: "Announcements by the Russian government to nationalize the ownership of foreign companies that are suspending their business in the country due to a sham insolvency as part of a shortened insolvency procedure, concern us as a trade association very much." First of all, it can be assumed that companies that do not withdraw from the country will be allowed to continue doing business.

“Nevertheless, we strongly recommend that all German companies consult law firms operating in Russia in order to prepare for all eventualities.

The federal government is asked to represent the interests of German companies operating in Russia vis-à-vis the Russian government.”

As the Association of German Chambers of Industry and Commerce (DIHK) reported on request, around 3,650 German companies were still active in Russia before the outbreak of the Ukraine war.

Even before the outbreak of the war, companies with links to Russia that were active in Germany had given very negative feedback on the development of economic relations, according to the German-Russian Chamber of Commerce.

Half of the German companies with economic ties to Russia had already assessed the situation and prospects of their respective businesses negatively at this point in time.