German-Russian Cooperation – Challenges of 2020 and Prospects for 2021. Part 2. Economic Aspects

Abstract

In the first part of the article, the political results of 2020 and early 2021 were considered and an assessment of the medium-term prospects of German-Russian political cooperation was given. The second part is devoted to the peculiarities of economic cooperation during this period. The economy has come under the influence of restrictions on labor and capital mobility caused by the pandemic, disruptions in global supply chains, as well as negative dynamics of global commodity prices. Together, they led to a significant decrease in mutual trade. Negative processes took place against the background of a deep crisis of political confidence, the introduction of new sanctions by the EU and the US and the extension of existing sanctions. Efforts have increased to create a negative image of Russia in Germany. However, the business community of both countries managed to counter negative trends with steps aimed at stabilizing bilateral cooperation and giving it progressive development. Companies of both countries, despite negative events, did not stop their investment activity. A new area of cooperation has emerged – hydrogen energy, which should become one of the foundations for the energy transition of the EU countries to a climate-neutral economy. Interdepartmental state cooperation in the economic sphere continued. In September 2020, the results of the three-year German-Russian scientific and educational partnership were summed up. At the same time, the Year of Germany began in Russia, and in December, the common German-Russian Year of Economy and Sustainable Development. The article analyzes the features of economic cooperation, highlights the main factors that determine its content and gives a forecast of its mid-term development. Particular attention is paid to the Nord Stream 2 project.