RIGA, October 6 (RIA Novosti) – The food embargo imposed by Russia in response to sanctions by the European Union and the United States, has caused Latvia's GDP to drop by 0.25 percent, Latvian Economy Minister Vjaceslavs Dombrovskis told RIA Novosti.
"According to our estimates, the total loss is 0.25 percent of GDP. The damages totaled about 52 million euros [$ 65.6 million]. There are three industry branches that have suffered the most – the dairy industry, haulage firms, who work with customers in Russia, and farmers engaged in dairy production," the minister said.
Among the three Baltic countries, Latvia is not the worst hit by Russia's food embargo, Dombrovskis said.
"Latvia has not been the worst hit by the Russian sanctions. For instance, we export far fewer fruit and vegetables to Russia than Lithuania," the minister said.
Over the past few months, the United States and the European Union have introduced several rounds of economic sanctions against Russia, blaming Moscow for meddling in Ukraine's internal affairs – claims that Russia has repeatedly denied.
In August, Moscow responded to the sanctions, implementing a one-year ban on certain food imports from the European Union, the United States, Australia, Canada and Norway.