The chief executive of Volkswagen has called for a negotiated settlement between Russia and Ukraine so that sanctions can be lifted to avoid damaging the German economy.
Herbert Diess said that Brussels should be pushing for a peace deal so that free trade can resume to protect the European Union’s commercial interests.
The comments drew an immediate hostile response from Ukrainian leaders, who said that Mr Diess should instead focus on persuading Vladimir Putin to end his illegal invasion and attacks on civilians.
Speaking at an industry summit organised by the Financial Times, Mr Diess said: “I think we should do the utmost to really stop this war and get back to negotiations and get back to trying to open up the world again.
“I think we should not give up on open markets and free trade and I think we should not give up on negotiating and trying to settle.”
He added that if global trade continues to struggle, “Europe will suffer most, and Germany, but I think it will be bad for the whole world”.
Dmytro Kuleba, Ukraine’s foreign minister, said: “The best strategy for major German businesses would be to fully sever business ties with Russia and then call on Russia to stop the war and return to diplomacy.”
Mr Diess’s statement came a day after German chancellor Olaf Scholz pledged to continue to provide weapons to Ukraine, as Europe would not be “capitulating to brute force”.
However, Brussels scrapped a proposed ban on EU tankers carrying Russian oil following intensive lobbying from Greece, Malta and Cyprus.
The measure would have banned Europeans tankers from carrying Russian crude oil anywhere in the world, potentially allowing non-EU countries to step in and grab market share.
The plan was dropped as G7 allies failed to agree to a similar ban in their plans to end imports of Russian oil.
Industries have been supportive of the sanctions against Russia, even though the war has worsened existing supply chain disruption globally.
Volkswagen, the world’s second largest car manufacturer, has cut production due to a shortage of wiring harnesses made in Ukraine.
It has also sold out all electric models in the US and Europe this year.
Andrij Melnyk, Ukraine’s ambassador to Berlin, said: “In Kyiv people would prefer the VW CEO to address President Putin personally, a man he knows well and the man who has unleashed this war of destruction against the people of Ukraine.”
He added that Mr Diess should “call on the Kremlin to immediately cease combat operations against the civilian population of Ukraine”.
Mr Diess has previously caused controversy as he told VW employees in 2019 that “EBIT macht frei”, in what appeared to be a play on “Arbeit macht frei” — work makes you free — a notorious Nazi slogan that was inscribed over the entrance to Auschwitz and other concentration camps.
He apologised following resignation calls.
EBIT is an acronym for Earnings Before Interest and Tax, a key indicator of a company’s profit.
Credit: Yahoo News