Nearly two-thirds of German companies expect constant or even better business in Russia in 2014 despite ongoing sanctions over Ukraine, said a survey published Tuesday by the German-Russian Chamber of Commerce (AHK).
Approximately one in three companies is worried about reductions in business of up to 50 percent or more, the survey of 300 German companies said.
Small and medium enterprises from machine and plant engineering sectors were most affected, said Dr. Volker Treier, deputy chief executive of the German Chambers of Industry and Commerce Chambers (DIHK).
Nearly 80 percent of respondents found the current economic sanctions ineffective and considered it as inappropriate to bring about political solutions.
More than half of the companies said that the conflict in Ukraine has a direct impact on their business.
"We are not convinced that long-term goals can be achieved with economic sanctions. However, under the current circumstances, they seem to be an effective means to bring all parties to the negotiating table," said Rainer Seele, chairman of the AHK.
If the situation continues to deteriorate or sanctions last for a long time, some companies would be forced to cancel projects, lay off employees or leave Russia, the survey added.