Russia Sanctions Could Put Germany Inc. on the Front Lines of Trade War

German Chancellor Angela Merkel hasn’t minced words. Unless Vladimir Putin steps back from Ukraine, she’s prepared to back European sanctions that would cause “massive economic and political harm” to Russia. What about the harm Germany would suffer if the showdown escalates into economic warfare?

Among European Union nations, Germany is by far Russia’s most active trading partner. It’s well-known that Germany depends heavily on Russian oil and gas, which accounts for the bulk of the €39.8 billion ($55.4 billion) it imported from the giant to the east in 2012. What may be more surprising is that Germany sells Russia almost as much as it buys, with exports totaling €37.9 billion in 2012—accounting for 31 percent of all European exports to Russia.