Economics Minister Hubert Aiwanger is appealing to Bavarian companies to withdraw permanently from Ukraine. “In view of the uncertain future, relocating supplier locations from Ukraine to other countries and providing targeted political and economic support must be considered as soon as possible,” said Aiwanger in a statement from his ministry on Friday. The Free Voters boss demanded this support from the federal government. Aiwanger had previously informed himself about the situation in a video conference with companies represented in Ukraine. “Large Bavarian companies immediately closed local plants to keep their employees safe,” said the Economics Minister. “Due to the war, investments of hundreds of millions of euros are in danger.” A relocation of the Ukraine locations would take months, “but would be necessary because a permanent conflict and long-term supply uncertainties are to be expected”.
According to Aiwanger, the Ukraine is important for the Bavarian economy as a supplier of titanium, lithium, nickel, rare earths and preliminary products. However, Ukraine does not play a major role in Bavaria’s foreign trade balance; according to the ministry, the Eastern European country ranks 43rd among the most important trading partners. Since the self-dissolution of the Soviet Union a good thirty years ago, many German companies have been reluctant to invest in Ukraine anyway. One reason is that Ukrainian authorities and politicians have a reputation for widespread inefficiency and corruption.
Apart from that, Aiwanger called for comprehensive financial relief from the federal government for companies with energy-intensive production due to the expected further increase in energy prices. Aiwanger wants to demand this next Monday at a conference of the state economics ministers with Federal Economics Minister Robert Habeck (Greens), which, according to the Munich ministry, was scheduled on Aiwanger’s initiative.