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Moscow expels over 20 German diplomats in tit-for-tat move

Russia on Saturday announced the tit-for-tat expulsion of over 20 German diplomats following the "mass" removal of Russian embassy staff from the country and accused Berlin of destroying ties.

Published: 23 April 2023 09:42 CEST

Moscow expels over 20 German diplomats in tit-for-tat move

Russian Foreign Ministry spokeswoman Maria Zakharova speaks to the media in Moscow in 2019. Photo: Yuri KADOBNOV/AFP.

Foreign ministry spokeswoman Maria Zakharova told state-run television Zvezda “more than 20” German diplomats would have to leave. Her statement came shortly after the ministry denounced “another mass expulsion of employees of Russian diplomatic missions in Germany.”

The German foreign ministry said it took note of the Russian statements.

“The Federal government and the Russian side have been contact in recent weeks on personnel matters in their respective representations abroad,” the German foreign ministry told AFP.

“Today’s flight is part of that process,” it said, without specifically mentioning any expulsion of Russian diplomats.

Moscow accused Berlin of “continuing to demonstratively destroy the entire range of Russia-Germany relations.”

“As a response to Berlin’s hostile actions, the Russian side has decided to mirror the decision and expel German diplomats from Russia,” the foreign ministry said.

Moscow will also limit the maximum number of employees in German diplomatic missions in the country, and said Germany’s ambassador Geza Andreas von Geyr was notified of the measures on April 5.

Increased espionage

Germany had for years maintained deep economic ties with Moscow, particularly in the energy sector where it is dependent on Russian gas.Relations however soured since Russian President Vladimir Putin launched a military operation in Ukraine, and as Berlin increased its financial and military support to Kyiv.

Germany had been criticised for dragging its feet over delivering weapons to Kyiv and its reluctance to allow the despatch of German-made Leopard tanks to Ukraine.

In January it finally agreed to allow the armaments to be sent and pledged to deliver some of the most modern ones from its stocks.

The Kremlin said the Western tanks would “burn”.

The German security service also raised the level of alert regarding Russian espionage which it said had reached unprecedented levels after what Russia calls its special military operation in Ukraine.

It said Russia was targeting German companies and strategic infrastructure, especially energy, rail and road.

Early last year, Germany expelled 40 Russian diplomats who it said represented a security threat.

In October, Germany’s cybersecurity chief, Arne Schoenbohm, was sacked after allegations that he had ties to Russian intelligence services.

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Output is expected to expand 0.3 percent this year, the economy ministry said, up from a prediction of 0.2 percent in February.

The slightly rosier picture comes after improvements in key indicators — from factory output to business activity — boosted hopes a recovery may be getting under way.

The German economy shrank slightly last year, hit by soaring inflation, a manufacturing slowdown and weakness in trading partners, and has acted as a major drag on the 20-nation eurozone.

But releasing its latest projections, the economy ministry said in a statement there were growing indications of a “turning point”.

“Signs of an economic upturn have increased significantly, especially in recent weeks,” Economy Minister Robert Habeck said at a press conference.

The ministry also cut its forecast for inflation this year to 2.4 percent, from a previous prediction of 2.8 percent, and sees the figure falling below two percent next year.

“The fall in inflation will lead to consumer demand — people have more money in their wallets again, and will spend this money,” said Habeck.

“So purchasing power is increasing, real wages are rising and this will contribute to a domestic economic recovery.”

Energy prices — which surged after Russia’s 2022 invasion of Ukraine — had also fallen and supply chain woes had eased, he added.

Several months ago there had been expectations of a strong rebound in 2024, with forecasts of growth above one percent, but these were dialled back at the start of the year as the economy continued to languish.

‘Germany has fallen behind’

But improving signs have fuelled hopes the lumbering economy — while not about to break into a sprint — may at least be getting back on its feet.

On Wednesday a closely-watched survey from the Ifo institute showed business sentiment rising for a third consecutive month in April, and more strongly than expected.

A key purchasing managers’ index survey this week showed that business activity in Germany had picked up.

And last week the central bank, the Bundesbank, forecast the economy would expand slightly in the first quarter, dodging a recession, after earlier predicting a contraction.

German Economics Minister Robert Habeck

Economics Minister Robert Habeck (Greens) presents the latest economic forecasts at a press conference in Berlin on Wednesday, April 24th. Photo: picture alliance/dpa | Michael Kappeler

Despite the economy’s improving prospects, growth of 0.3 percent is still slower than other developed economies and below past rates, and officials fret it is unlikely to pick up fast in the years ahead.

Habeck has repeatedly stressed solutions are needed for deep-rooted problems facing Germany, from an ageing population to labour shortages and a transition towards greener industries that is moving too slowly.

“Germany has fallen behind other countries in terms of competitiveness,” he said. “We still have a lot to do — we have to roll up our sleeves.”

Already facing turbulence from pandemic-related supply chain woes, the German economy’s problems deepened dramatically when Russia invaded Ukraine and slashed supplies of gas, hitting the country’s crucial manufacturers hard.

While the energy shock has faded, continued weakness in trading partners such as China, widespread strikes in recent months and higher eurozone interest rates have all prolonged the pain.

The European Central Bank has signalled it could start cutting borrowing costs in June, which would boost the eurozone.

But Habeck stressed that care was still needed as, despite the expectations of imminent easing, “tight monetary policy has not yet been lifted.”

In addition, disagreements in Chancellor Olaf Scholz’s three-party ruling coalition are hindering efforts to reignite growth, critics say.

This week the pro-business FDP party, a coalition partner, faced an angry backlash from Scholz’s SPD when it presented a 12-point plan for an “economic turnaround”, including deep cuts to state benefits.

Christian Lindner, the fiscally hawkish FDP finance minister, welcomed signs of “stabilisation” in the economic forecasts but stressed that projected medium-term growth was “too low to sustainably finance our state”.

“There are no arguments for postponing the economic turnaround,” he added.