Reuters - Video

EDITION: U.S. | U.K. | IN

World News

How do Russia sanctions hurt Germany?

Tuesday, August 12, 2014 - 02:37

Russia sends an aid convoy to Ukraine, despite Western warnings against using help as a pretext for an invasion. Worries about the impact of sanctions are also weighing on the euro zone, especially in Germany - Russia's largest trading partner in the EU. Ivor Bennett reports

▲ Hide Transcript

View Transcript

Russia says it's a humanitarian mission. A convoy of 280 trucks bound for Ukraine. Their cargo: food, water and medication. But Kiev - along with the West - fears Moscow could turn the operation into a military intervention. Ukraine's deputy foreign minister Danylo Lubkivsky. (SOUNDBITE) (English) UKRAINIAN DEPUTY FOREIGN MINISTER, DANYLO LUBKIVSKY, SAYING: "Let me be clear: you don't need tanks and artillery to bring food and medicine for civilians. Stop the aggression, stop the Russian terrorists, stop the shelling, stop your cynical propaganda - and there will be no need for any humanitarian aid." Ukraine's said it will bar the convoy from crossing the border. Some members of parliament labelling it a Trojan Horse. Russia, though, insists its motives are purely peaceful. Foreign Minister Sergei Lavrov earlier claiming permission had come from Kiev. (SOUNDBITE) (Russian) RUSSIAN FOREIGN MINISTER, SERGEI LAVROV, SAYING: "We have agreed on all of the details with the Ukrainian government. I hope that Western partners will not put a spoke in the wheel and think about those people who desperately need electricity and water supplies to be restored and basic medication to be in hospitals." As the fighting continues between Ukrainian government forces and pro-Russian rebels, concerns are growing in Europe over the impact of sanctions. Germany's ZEW economic sentiment survey plummeted in August to a 20-month low. Russia is a key trading partner for the euro zone's biggest economy. Consumer goods group Henke l is among those already feeling the pinch - warning sanctions will hit 2nd half earnings. Rabobank's Jan Lambregts. SOUNDBITE (English) JAN LAMBREGTS, HEAD OF GLOBAL FINANCIAL MARKET RESEARCH, RABOBANK, SAYING: "It is the core countries, chief among which Germany, that are being hit disproportionately by any sanctions and downside risks there. That doesn't mean their recovery is all of a sudden going in reversal, but it does mean that they're being hit harder than the periphery. And therefore the periphery's role as a safe haven, as we saw in the first half of this year, the main beneficiary of capital inflows, could continue a little bit longer." Moscow's ban on EU food imports is also beginning to bite with Poland feeling the full force. Farmers there have lost a market that was worth over 300 million euros last year, and many fear their businesses will go under. Agricultural experts from all EU members are due to discuss the crisis. Russia accounts for 10 percent of the bloc's food exports, with the ban expecting to cost 11 billion euros.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

How do Russia sanctions hurt Germany?

Tuesday, August 12, 2014 - 02:37

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Thu, Jul 03, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)