By Andrea Thomas
BERLIN--Germany's Chancellor Angela Merkel Monday stressed the
need to prepare more sanctions against Russia because the risk
stemming from the country's "unacceptable" behavior in Ukraine
outweighs economic risks for German companies.
Her comments come after European Union leaders agreed late
Saturday to draw up options within a week for possible new
sanctions against Russia, with action to follow quickly unless
Moscow takes clear steps to scale back its intervention in
Ukraine.
"I have pointed to what these [sanctions] could mean for German
companies. But I also have to say what it could mean if you are
allowed to shift borders in Europe and attack other countries with
your troops without facing any consequences. In my opinion, this is
a much bigger risk than accepting certain disadvantages for
businesses during a limited period," Ms. Merkel told reporters,
after a meeting with officials from her conservative party.
"I believe it is necessary to prepare such sanctions and that
possible disadvantages in no way outweigh those resulting from
doing nothing."
Overall trade between Russia and Germany reached $100 billion
last year and represented 3.3% of German exports.
Given Germany's other big trading partners, such as the euro
zone and the U.S., economists and government officials have said
the impact of sanctions against Russia would be limited as long as
Moscow didn't cut off gas supplies to Germany, which imports more
than a third of its gas from Russia.
Considerations to step up economic sanctions against Russia come
amid European and U.S. leaders' growing frustration with Russia's
moves in Ukraine over the recent months. They have said Moscow has
aided pro-Russian rebels in eastern Ukraine and sent more than
1,000 troops into Ukraine territory, a claim that Russia has
rejected.
Ukraine last week accused Russia of invading the country.
President Vladimir Putin, in an interview on state television
Sunday, said Kiev should begin "substantive, meaningful
negotiations, and not on technical issues, but on the political
organization of society and statehood in the southeast of
Ukraine."
Laurence Norman
in Brussels and Gregory L. White in Moscow contributed to this
article.
Write to Andrea Thomas at andrea.thomas@wsj.com