Anti- Russia bans can hit EU economy: Experts
Channel: World News
Date: 29/07/2014

The European Union (EU)’s sanctions against Russia over the crisis in Ukraine could hit its own struggling economy, experts warn.

The warning came on Tuesday, as EU members are set to decide on the bloc’s widening sanctions against Russia.

According to reports, the EU sanctions on Russia could cut some 40 billion euros from the bloc’s annual economic output and the figure could rise to 50 billion in 2015.

Last week, the International Monetary Fund (IMF) warned that the European economies, which have active and direct trade links with Russia, will be worst hit by the measures.

In addition, European countries, particularly eastern ones, rely on Russia for gas deliveries, as it supplies a third of Europe’s gas needs.

An unnamed EU diplomat said that “all the member states are aware their economies could be affected.”

Members of the European Union are due to make a final decision later on Tuesday on widening the bloc’s sanctions against Russia. The measures include closing EU’s capital markets to Russian state banks, an arms sales embargo and restrictions on dual-use and energy technologies.

The EU along with the United States have been accusing Moscow of playing a role in the crisis in eastern Ukraine, which broke out when Kiev launched military operations to silence pro-Russia protests in April.

Threats of sanctions intensified further after Malaysian Flight MH17, which had been heading from the Dutch capital of Amsterdam to Kuala Lumpur, was reportedly shot down over Ukraine’s volatile Donetsk region on July 17.

Western powers accuse pro-Russia forces of downing the civilian airliner. The pro-Russians deny any involvement in the tragedy.