Germany could also see second quarter gross domestic product shrink towards zero from 0.8 percent in the first quarter due to the sanctions imposed on Russia, the influential Ifo Institute think tank warned earlier this month.
"The growth forecast that Ifo presented last month will likely have to be revised downward. The assumption that the second quarter will have grown 0.3 percent from the first quarter can no longer be held onto. It's more likely that there was zero growth in the second quarter," Ifo president Hans-Werner Sinn wrote in a column for Wirtschaftswoche magazine.
Around 10 percent of exporting businesses in Germany sell to Russia, according to the Statistics Office, and many German companies have felt the impact of tensions in the East.
German sports brand Adidas issued a profit warning last month and slashed its net income forecast, citing "tensions" in Russia.
Henkel, maker of Persil detergent and Schwarzkopf hair products, warned earlier on Tuesday that geopolitical tensions in Russia could cause slower earnings growth in the second half of this year.
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"What we are seeing a slowdown is in Eastern Europe, less so surprisingly enough in Russia. Russia continues to grow…But overall the economy is slowing down due to political crisis in Eastern Europe, and particularly in Ukraine," Kasper Rorsted, CEO of Henkel, told CNBC in a TV interview.
"We do think that we will see a slower growth in the second half in Russian than we did in the first."
Henkel was down more than 5 percent on the DAX index by mid-morning.
- By CNBC's Arjun Kharpal