The Federation of German Industries (BDI) said Monday it was opposed to sanctions being imposed on Russia over the conflict in Georgia and called for dialogue rather than confrontation, reported dpa.
The BDI issued its call as European Union (EU) leaders prepared to hold an extraordinary summit in Brussels to discuss the bloc's response to the crisis in the Southern Caucasus.
Proposals to put Russia under pressure through sanctions or to halt World Trade Organization (WTO) accession talks or partnership with the European Union (EU) "lead in the wrong direction," BDI President Juergen Thumann said.
"We would all lose if this were to happen," Thumann said.
Germany and Russia needed good relations, and the mutual economic involvement should work to dampen the crisis, Thumann said.
"We need more dialogue rather than more confrontation," the German business chief said, adding that business was prepared to make its contribution.
Germany imported goods to the value of 28.8 billion euros (42 billion dollars) from Russia last year, much of it in oil and gas, while Russia imported goods valued at 28.2 billion euros, largely machinery and vehicles.
EU members that were previously in the Soviet sphere of influence have come out for a strong response to Russia's military incursion into Georgia last month, while some other countries in the 27-member bloc have urged moderation.