On April 16, 1922, he signed the Treaty of Rapallo—an international agreement—with the Russian Socialist Federative Soviet Republic, which would later become a founding member of the Soviet Union. The resumption of diplomatic and economic relations was of paramount importance for Germany (and AEG), whose goods were being boycotted by its former wartime enemies in the West. Russia became AEG’s largest trading partner. Nevertheless, Rathenau was reluctant to pursue a rapprochement with the Russians. Establishing diplomatic, economic, and military ties with Russia was the policy of Reich Chancellor Joseph Wirth, not that of the incumbent Foreign Minister. Rathenau sought reconciliation with the arch-enemy France and viewed the Treaty of Rapallo more as an obstacle on the path to that goal. The Treaty of Rapallo, perceived as an alliance with the Soviet Union, stirs up right-wing sentiment. Two months later, on June 24, 1922, Rathenau falls victim to an assassination attempt by right-wing extremists.
The Treaty of Rapallo and the German-Soviet cooperation it established continue to have an impact to this day. Russia has always been displeased with Germany’s desired orientation toward the West. The German side sought to counter this suspicion with the Treaty of Friendship (Berlin Treaty), concluded on April 26, 1926. What began with the Treaty of Rapallo continued with the Treaty of Locarno and the Berlin Treaty. The relationship between the two countries deepened, particularly in terms of trade policy. While Germany supplied equipment, machinery, and technology to the Soviet Union for the development of oil fields, Russia supplied the German Reich with oil and coal. Later, extensive natural gas deliveries were added. The German-Soviet pipeline natural gas deals concluded in the 1970s gave a boost to trade relations during the Cold War. On November 20, 1981, both sides agreed to a 20 billion DM deal for the construction of pipelines and compressor stations. The plan is for 40 billion cubic meters of natural gas to flow annually from Russia to Germany and Western Europe. Due to the advanced German-Soviet rapprochement, Poland and other neighboring Eastern European countries, as well as the U.S., see their economic and security interests compromised. Despite all the criticism, then-Chancellor Helmut Schmidt (SPD) remains undeterred. He and Foreign Minister Hans-Dietrich Genscher (FDP) stand by the largest East-West gas deal of all time. Pipelines stretching thousands of kilometers from Siberia to Western Europe—some with six lanes and designed to last for decades—are technically challenging. Follow-up orders for the AEG Group to supply electrical systems and equipment were also expected. Although the originally planned deal had to be scaled back significantly due to spiraling borrowing costs, AEG still secured a 700 million DM contract. Since the policy of détente known as “change through rapprochement,” established by Chancellor Willy Brandt (SPD) and Federal Minister Egon Bahr (SPD), such unifying economic agreements are intended to secure peace in Germany and Europe. Those who supply gas, oil, and coal do not drop atomic bombs, nor do those who need these raw materials. The “change through rapprochement” continues in economic policy with the Nord Stream 1 Baltic Sea pipeline, driven by Federal Chancellor Gerhard Schröder (SPD). Even more so than the 1,224-kilometer-long Nord Stream 1 pipeline, completed in 2012, Nord Stream 2—the second Baltic Sea pipeline—has come under criticism. In 2022, the approval process was suspended and put on hold in the wake of the Russian-Ukrainian war. On April 12, 2022, in the midst of the Russian-Ukrainian war, the Ukrainian government voices its unease and makes it clear that Federal President Frank-Walter Steinmeier (SPD) is not welcome in Kyiv due to his past policy toward Russia, which was perceived as too friendly. Steinmeier would be wise to stay away from a joint trip by the Polish, Estonian, Latvian, and Lithuanian presidents—Andrzej Duda, Alar Karis, Egils Levits, and Gitanas Nausėda. Some speak of the “Rapallo reflex” 100 years later. Such political and diplomatic discord casts no shadow whatsoever on AEG IE’s cooperation with Ukrainian companies and energy suppliers. Although combat operations are reported near a Ukrainian nuclear power plant, AEG IE continues work in April 2022 to commission an excitation system at this plant. The escalating course of the “special military operation”—as it is described in Russia according to the language mandated there—is placing too many restrictions on AEG IE AG’s work in Ukraine. One year after the war began, it is still impossible to predict when the guns will fall silent.