Europe hurting from sanctions on Russia
Nov 26, 2014
US sanctions against Russia are probably hurting Europe more than Russia. How long can they keep these sanctions going without resenting the pressure from US policy? China's businessmen love these sanctions, as it eliminates business competition from Europe.
(Reuters) - At a technology fair in Moscow last month, European executives faced the new reality of doing business in Russia since the West imposed sanctions: the number of companies at the international showcase had shrunk by half from a year ago….
In August, the month after sanctions were imposed, EU exports to Russia fell 19 percent to 7.9 billion euros ($9.91 billion) compared to July, a loss of almost 2 billion euros, according to the EU's statistics office Eurostat.
Although the data is not adjusted for seasonal swings, exports were also down 18 percent compared to August 2013 at a time of year that is traditionally busy for exporters….
In August, EU exports of machinery and transport equipment such as cars and tractors fell 23 percent compared to July. Compared to a year ago, those exports fell 21 percent.
… [C]ompanies are at risk of losing contracts to competitors from China and elsewhere, according to Frank Schauff, chief executive office at the Association of European Businesses in Russia.
"Countries that have not imposed sanctions are able to jump in where the EU has left a gap," said Schauff. "The economic position that the European Union has in Russia is at risk and it is very difficult to gain that back if it is lost."
Beijing's envoy to Berlin said in October that China would seize business opportunities in Russia.
Dr. Stephen Jones