World Economy

Anti-Russia Sanctions Can Cost EU $114b

Anti-Russia Sanctions Can Cost EU $114b
Anti-Russia Sanctions Can Cost EU $114b

The European Union could lose up to €100 billion ($114 billion) due to the anti-Russian sanctions if things remain unchanged, a study by the Austrian Institute of Economic Research revealed Friday.

Die Welt newspaper reported that the research, conducted exclusively for the Leading European Newspaper Alliance, considered the worst-case scenario, if the sanctions remain in place, Sputnik reported.

“If the situation does not change fundamentally, our most pessimistic scenario will come true,” one of the research authors Oliver Fritz was quoted as saying by Die Welt.

According to the calculations, the current political situation can also affect over 2 million EU jobs because of the declining exports.

In contrast to the analysts’ forecast, the European Commission said that the losses incurred by the European Union were “relatively small and manageable,” the newspaper points out.

Since March 2014, the United States, European Union, and other western countries have sanctioned Russia’s banking, defense and energy sectors over its alleged role in the Ukrainian crisis. Moscow has repeatedly denied those allegations.

In August, Moscow imposed a year-long food embargo on the countries that had sanctioned it.

Meanwhile, EU member states agreed Wednesday to extend damaging economic sanctions against Russia over the Ukraine crisis by another six months to the end of January 2016, officials said, AFP reported.

The agreement by ambassadors from the 28 European Union nations meeting in Brussels will be formalized by foreign ministers from the bloc when they meet next week, the officials said.

The following day, the foreign ministers of France, Germany, Ukraine and Russia are slated to hold talks in Paris. It is hoped those meetings may create renewed diplomatic momentum towards resolving the violence in east Ukraine, and address tensions between Russian and western nations over the conflict and sanctions that have arisen from it.