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Russia's “showcase city”: German companies are rebuilding Mariupol for Putin

2024-04-04T09:57:51.190Z

Highlights: Two years after the siege, Mariupol is rebuilt by Russia. But German companies are the focus of participation - despite sanctions. Investigations by the ARD magazine Monitor have shown that two companies in particular are being used for Putin's propaganda. Russia's “showcase city”: German firms are rebuilding Mariupo for Putin.. The EU's sanctions against Russia are extensive. Building materials are not explicitly listed as sanctioned goods by the EU. However, there are several areas that are affected by the sanctions and could cover the activities of Knauf and WBK Systems GmbH.



As of: April 4, 2024, 11:48 a.m

By: Amy Walker

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Two years after the siege, Mariupol is rebuilt by Russia. But German companies are the focus of participation - despite sanctions.

Berlin/Mariupol – Two years have now passed since the Ukrainian port city of Mariupol was besieged by Russia and destroyed beyond recognition. Mariupol was once a cultural city inhabited by almost half a million people. Today it is being rebuilt by the former attacker with the aim of creating a model Russian city. Vladimir Putin, the ruler in Moscow, recently personally visited Mariupol to see the progress of the reconstruction.

But there are now shocking revelations about the involvement of German companies in the reconstruction of Mariupol. Investigations by the ARD magazine

Monitor

have shown that two companies in particular are being used for Putin's propaganda despite sanctions.

Construction companies involved in the reconstruction of Mariupol

The research focuses on two construction companies. On the one hand, the plaster manufacturer Knauf, which has its headquarters in Iphofen in Franconia, but operates worldwide and also has a branch in Russia. According to

Monitor

, 4,000 Knauf employees still work in Russia.

The second company in focus is WBK Systems GmbH, based in North Rhine-Westphalia, which also has a branch in Russia and specializes in equipping companies to produce building materials. Both companies are said to operate in Mariupol for Russia. WBK Systems GmbH did not respond to

Monitor

's request for comment; The Knauf Group simply stated that it produces in Russia for Russia, which does not violate the sanctions.

War crimes are being counted in Mariupol and throughout Ukraine. © Evgeniy Maloletka/AP/dpa

However, a sanctions expert interviewed by ARD said: “The idea that if I have a subsidiary in Russia only in the Russian area, only on the Russian territories, that this is, so to speak, irrelevant to sanctions, that is an absolute myth and cannot go any further to be away from reality.”

Extensive EU sanctions against Russia

The EU's sanctions against Russia are extensive. Building materials are not explicitly listed as sanctioned goods by the EU. However, there are several areas that are affected by the sanctions and which could cover the activities of Knauf and WBK Systems GmbH. For example: “In order to further increase the pressure on Russia's industrial capacity, the EU decided in October 2022 to expand the range of services that can no longer be provided to Russia to include IT consulting, legal advice, and architectural and engineering services “. In addition, the export to Russia of goods “that could strengthen Russian industrial capacities” is prohibited.

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Anything that could benefit the Russian military in any way is also banned. Since the reconstruction of Mariupol is currently partially financed directly by the Russian Ministry of Defense, the activities of the two German companies are also subject to the sanctions.

Many German companies are still active in Russia

In Germany and the EU there are always reports about companies that are still active in Russia despite everything. A study by the organization B4Ukraine showed at the beginning of February 2024 that around two thirds of the companies that operated in the country before the war continue to do business in Russia. According to B4Ukraine, Germany is also one of the largest foreign taxpayers in Russia.

One of these companies is the pharmaceutical company Bayer, which justified its presence in Russia in the

Frankfurter Allgemeine Zeitung

as follows: “Depriving the civilian population of essential health and agricultural products would only multiply the number of lives claimed by this war.”

In 2023, German trade with Russia shrank by three quarters to 12.6 billion euros due to the sanctions against Russia. The Eastern Committee of the German Economy reported that trade with Russia recorded a historically unprecedented decline of 75 percent last year. This is mainly due to the decline in energy imports such as oil and gas.

Source: merkur

All news articles on 2024-04-04

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