DMG Mori opened a factory in Ulyanovsk, Russia, a year after Russia's invasion of Crimea. Less than nine years later, the Russian government took control of the plant.
DMG Mori had secured itself from the federal government by means of an investment guarantee before the plant was even built. The damage is said to amount to more than 90 million euros - which the German-Japanese mechanical engineering company is now claiming from theFederal government. Just a few weeks ago, Germany planned to expropriate a major Russian corporation. Now Russia is getting serious. A mechanical engineer gets caught between the two fronts. The Russian expropriation creates a new level of escalation in the economic conflict with Germany. In addition, the European Union is currently looking for ways to confiscate billions of dollars in frozen Russian assets. It remains to be seen what the Western reaction to Russia’s expropriating of DMg Mori will be, and what will be seen in the EU's response.