RIGA, August 4 (RIA Novosti) - Latvian exporters are facing difficulties due to the sanctions the European Union has imposed on Russia over the Ukrainian crisis, Latvian media reported citing experts on Monday.
Conquering Western markets takes a long time and extensive investment, which could force the European Union to provide financial help to Latvian firms, as well as those of other member-states that could suffer from the bilateral sanctions, the LTV channel reported.
Processing enterprises may suffer the most from the sanctions against Russia, according to the db.lv portal.
Director of the Investment and Development Agency of Latvia Andris Ozols told journalists that more and more companies are becoming interested in re-orienting their businesses from the Russian consumer market to the European market. However, Ozols said the move is not possible in every field, as the European market has an abundance of its own products. Besides, Russia is willing to pay more for canned fish that the European Union, according to the director.
The European Commission last week published the names of eight individuals and three additional Russian entities targeted by sanctions over Russia’s alleged role in the escalation of the Ukrainian crisis. The economic sanctions restrict Russian state-owned banks’ access to EU capital markets, banning trade in arms and curtailing Russian access to sensitive technologies, particularly in the oil sector.
The European Union, along with the United States, has been adding names of Russian individuals and companies to its black list since March, when Crimea reunited with Russia. The sanctions grew tougher after the July 17 Malaysia Airlines plane crash with 298 people on board in eastern Ukraine, which is largely controlled by independence supporters.
Russia’s Foreign Ministry has repeatedly called the language of sanctions counterproductive and said the measures would have a boomerang effect on European economies.
