Economists busted myth about damage caused by Russia’s sanctions to Western economies

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Russian food embargo imposed in 2014 in response to Western sanctions did not cause significant damage to the EU countries.

To such a conclusion the experts of the Institute of Gaidar and the Russian Academy of Foreign Trade arrived after analyzing the data from Eurostat and the United Nations Comtrade database.

The greatest losses were recorded in the Netherlands ($14 billion), in France and Germany (more than $10 billion), Belgium ($8 billion). The document says that the losses on the Russian market are insignificant on the background of a general drop in the value of exports of these countries. For example, exports of Slovakia fell by 28.9%, including losses amounted to only 0.8% in the Russian market. Similar figures are seen for France: 15.6% of total drop, with only 0.9% in the Russian market.

In addition, it was reported that the volumes of exports of the majority of agricultural products from European Union increased in 2015 (€455.1 billion in 2013, €461.5 billion in 2014, and €482.5 billion in 2015).

Suppliers of meat products, that lost the Russian market, have found other markets, and not only compensated their losses, but even increased exports.

Lithuania suffered from the loss at the vegetables market, although it managed to offset the decline in deliveries in Russia with increased exports to other countries. The only country that suffered from Russian counter-sanctions on fruits was Poland. Reduced exports to Russia of 782 thousand tons were only partially offset by an increase in exports to other countries (433 thousand tons).

In June, Russian President Vladimir Putin signed a decree on the extension of the embargo of food products until the end of 2017.

Source: Rosbalt