Saturday April 18, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Russian sanctions seen giving EU 6.7 billion hit in ING estimate

Corina Ruhe & Maud van Gaal

Russia’s ban on imports of western food could cost the European Union an annual 6.7 billion euros ($9 billion) in lost production, according to ING Groep NV.

“The potential effects of the Russian embargo on imports of Western food go far beyond the effects,” of fruit and perishable vegetables, economists including Raoul Leering at Amsterdam-based ING said in a research note. Their calculations, which include the “value added” created by international trade, put the number of jobs at stake at 130,000.

Russia this month announced a one-year ban on a range of food products from the EU and the U.S., in retaliation for sanctions against the country over Ukraine. While the move, which hits products ranging from Gouda cheese to Polish apples, directly affects exporters to Russia, there’s a spillover impact on firms that supply those exporters, according to ING.

The EU sold 1.26 billion euros of fruit and 769 million euros of vegetables to Russia in 2013, trade data from the 28- nation bloc show. The European Commission on Aug. 18 activated emergency support of 125 million euros through November for fruit and vegetable producers.

The loss of Russian business amounts to about 6 percent of EU production and 0.04 percent of gross domestic product, according to ING’s analysis.

Baltics Hit

Germany will suffer the biggest production loss in monetary terms, about 1.3 billion euros. While Poland’s estimated loss is smaller, the potential toll in terms of payrolls is larger, at 23,000. Taking the different economies into account, the Baltic states would be hit hardest. Lithuania could lose 0.4 percent of GDP, Estonia 0.35 percent and Latvia 0.2 percent.

Non-Russian exporting firms will also suffer a fallout from the ban as an excess of supply in the EU depresses prices, while there is the additional loss of exports to Ukraine. The possible downward effect of the crisis also harms the economy. The negative effect could be damped if food producers find new markets.

“On balance the additional effects seem to make the above calculations a conservative estimate of the economic damage that can be caused by the crisis in Ukraine,” ING said.

[Bloomberg]

ekathimerini.com , Wednesday August 20, 2014 (14:20)  
Greece poised to sign gas deal with Russia, says German weekly
Russia gas deal would not solve Greece’s problems, says Schaeuble
Spanish official slams Greece, says time ´running out´
ECB examines possible Greek IOU currency in case of default, sources say
Kotzias to begin US visit with Kerry meeting in Washington
Foreign Minister Nikos Kotzias is due to begin a five-day visit to the US on Monday. He will begin his trip by meeting Secretary of State John Kerry in Washington, where he will also hold ta...
Turkey asks for investigation into Greek mosque attacks
The Turkish Foreign Ministry has asked Greece to investigate the vandalism of two mosques in Komotini following incidents on Friday. “Turkey requests Greek authorities to clarify as soon as ...
Inside News
BASKETBALL
Triumph for Olympiakos at Barcelona
Olympiakos produced its best away performance so far this season to defeat host Barcelona 76-63 on Friday and snatch the home advantage in the Euroleague play-offs. The Reds have now tied th...
BASKETBALL
Another heavy loss for improved Panathinaikos in Moscow
Panathinaikos raised its performance since Tuesday but still suffered a 20-point loss at CSKA Moscow on Thursday to find itself trailing 2-0 after Game 2 of the Euroleague play-offs. Having ...
Inside Sports
COMMENTARY
Back to the beginning
From 1980 up until the present day, the Greek educational system has given a false sense of democratization based on a flawed system of educator and student participation. The educational ou...
EDITORIAL
Protecting a key asset
Tourism has emerged as the only real “heavy industry” in Greece to have weathered the crisis so it is not only a question of duty that everyone protect it but also interest. To begin with, m...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greece poised to sign gas deal with Russia, says German weekly
2. Russia gas deal would not solve Greece’s problems, says Schaeuble
3. Spanish official slams Greece, says time ´running out´
4. Kotzias to begin US visit with Kerry meeting in Washington
5. Turkey asks for investigation into Greek mosque attacks
6. Trash keeps Pyrgos and Ancient Olympia schools shut
more news
Today
This Week
1. Back to the beginning
2. Terrorism suspects caught following German request
3. Golden Dawn on trial amid conflict over court venue
4. Protecting a key asset
5. Turkey asks for investigation into Greek mosque attacks
6. Kotzias to begin US visit with Kerry meeting in Washington
Today
This Week
1. Quarantine for Greek bank subsidiaries in neighboring countries
2. Greece and lenders head back to technical talks
3. Contraband is big business in Greece
4. FYROM push expected at EU meeting
5. Islands of eastern Aegean struggle as migrant influx triples
6. Greek finance ministry hits back at German newspaper report
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.