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14 Dec, 2017 09:11

Germany biggest loser from EU sanctions against Russia

Germany biggest loser from EU sanctions against Russia

Economic penalties introduced by the EU against Russia three years ago have become punitive for Germany, according to a new study published by the Kiel Institute for the World Economy, as quoted by German newspaper Frankfurter Allgemeine Zeitung.

“Germany accounts for nearly 40 percent of export trade losses compared to the Western countries, with other major geopolitical players far less affected,” the study states.

The authors say that exports from the United Kingdom to Russia dropped 7.9 percent, while French exports declined by 4.1 percent. Trade between the US and Russia decreased by just 0.6 percent.

According to the institute's estimates, German exports are currently €618 million lower than they could be if the sanctions were not imposed. The analysts highlight that overall export losses due to the mutual trade restrictions have totaled €37.5 billion since the penalties were introduced. EU losses reportedly comprise 90 percent of that figure.

Sanctions against Moscow were introduced by Brussels in 2014 over Russia’s alleged involvement in the conflict in eastern Ukraine. The punitive measures targeted Russia’s financial, energy, and defense sectors; along with some government officials, businessmen, and public figures.

The Kremlin responded by imposing an embargo on agricultural produce, food and raw materials from countries that joined the anti-Russian sanctions. Since then, both sides have extended the measures.