BERLIN—German medium-size businesses warned on Tuesday that European sanctions against Russia could cost them precious market share to companies in Asia.
Many so-called Mittelstand companies—the small-scale yet highly competitive businesses that form the backbone of Germany's economy—are preparing to slash jobs and investment in Russia in the wake of the Ukraine crisis.
"China is the distinct beneficiary" of Europe's sanctions policy toward Russia, said Rainer Seele, president of the German-Russian Foreign Chamber of Commerce AHK, adding that sanctions were threatening long-standing economic ties between Germany and Russia.
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