Russia to Redirect Trade Elsewhere in Case of EU-US Sanctions
Article: http://rt.com/business/russia-eu-us-sanctions-742/
- European Union and the US are imposing sanctions on Russia due to the conflict between the country and Ukraine.
- Russia is claiming that "In turn, the EU is Russia’s biggest trade and investment partner, with trade turnover estimated at $330 billion in 2012” and that the introduction of sanctions may lead to a considerable financial losses for the EU.
- The US based companies, such as General Electric and Boeing are very concerned about the planned sanctions, as well as other countries in the EU as they will also be heavily affected.
Due to the conflicts between Russia and Ukraine, it has caused the US and the European Union to impose sanctions on Russia. However, forcing sanctions on Russia could be detrimental to the European Union as Russia is one of the biggest contributors in the EU. Imposing sanctions on Russia will also affect the countries in the European Union. As seen in the article, Latvia has “so far voiced the biggest concern over sanctions against Russia, as the adverse effect would hit the country the hardest compared to all the EU member states.” It is also said that Latvia’s economy or GDP may go down by at least 10 percent, if sanctions were to be applied on Russia.
With this, it is shown that imposing sanctions on Russia may affect the European Union countries, but as well as big companies that are tied or are in agreement with Russia as well.
Source: http://rt.com/business/russia-eu-us-sanctions-742/
My blogs talk about something similar. Why is Latvia's economy so interconnected with Russia? What industry in particular would be hit the hardest?
ReplyDeleteOne thing you didn't mention in your post but that I read in the article Bettina was that Latvia thinks they should be compensated for any damage they incur with regards to sanctions on Russia and how that may hurt the Latvian economy. It really makes it sound like Latvia wants to be a part of the EU but if a group decision is made wants some sort of immunity.
ReplyDeleteOMG. I was skimming this article when looking for an article.
ReplyDeleteDo you think that they are just doing this for the money?
Latvia might want to be a part of the EU but are they willing to drop their GDP by 10%? The financial losses in the EU may be a big concern for the countries that are in the European Union.