Investments by German businesses into Russia reached their highest level for a decade last year, topping €3 billion, according to a statement from the Russian-German Chamber of Commerce (ECP). At the same time, the number of German firms operating in Russia fell from over 6,000 to around 4,500 over the same period.

German businesses have been the most active investors in Russia since the fall of the Soviet Union, catalysed at first by former German chancellor Gerhard Schroeder, who was a big fan of Russia. Schroeder has remained close friends with Russian President Vladimir Putin and now works for Gazprom.

Since Angela Merkel took over as German Chancellor, relations have cooled somewhat — especially following Russia’s annexation of Crimea in 2014 — but even Merkel is well aware of the importance of the Russian market to German business.

Most of Germany’s leading retail chains have set up in Russia, but in the last three five years some have started to withdraw, put off by stagnant real income growth and the cooling relations between Berlin and Moscow. The largest exit was the white goods retailer Media Markt’s decision to sell out to local rival M.Video.