Romania’s GDP to lose up to 0.6% this year if EU sets tough sanctions against Russia

By bne IntelliNews April 24, 2014

The impact of tough economic sanctions set by the EU against Russia is estimated at 0.6% on Romania’s GDP this year and at 0.3% in 2015, under the most radical scenario drafted by the EC, HotNews informed, quoting a leaked document sent by the Commission to the government in Bucharest. This would depress the country’s economic growth to 1.7% this year and 2.2% in 2015.

The Commission has reportedly drafted three scenarios, based on mild, moderate and tough economic sanctions to be set against Russia, and confidentially informed national governments before any such decisions are taken. The scenarios evaluate the impact on the economic growth, exports and imports.

Based on the position of each country, the Commission will draft a document to be used for deciding on further joint EU-level, or national, sanctions against Russia in case the latter intensifies its pressures against Ukraine, HotNews comments quoting unnamed government sources.

Under the moderate sanctions scenario, the negative impact on Romania’s GDP would be of 0.3% this year and 0.1% in 2015. The weak sanctions scenario would only diminish this year’s GDP by 0.1%, while keeping the 2015 GDP unaffected.

Under its baseline scenario, the EC expects Romania’s GDP to increase by 2.3% this year and by 2.5% in 2015 after last year’s 3.5% GDP advance driven partly by the agriculture.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Prosecutors indict Romanian telco RCS & RDS for bribery

Romania’s National Anticorruption Directorate DNA announced it has formally indicted telecom company RCS & RDS, some of its former managers, and the former head of the ... more

Romania’s Fondul Proprietatea warns of weakening corporate governance at Nuclearelectrica

Romanian restitution fund Fondul Proprietatea (FP) warned on August 22 that amendments proposed by the energy ministry regarding the supervisory board of state-controlled nuclear power ... more

Bucharest Bourse head Sobolewski withdraws amid unclear legal situation

Bucharest Bourse head Ludwik Sobolewski announced in a press release dated August 21 that he ... more

Most Read

  1. COMMENT: How will the new US sanctions affect Russia’s economy?
    5 days ago
  2. Russian bank Otkritie significantly reduces its holding of Russia 2030 Eurobonds
    5 days ago
  3. Russia still playing important role in Ukraine’s trade as turnover rises in H1
    6 days ago
  4. Two in five Russians (39%) are teetotalers
    7 days ago
  5. Kyiv ranks in top 10 of least liveable cities in world, EIU study shows
    7 days ago
  1. Erdogan lashes out at Germany, Nato, says "God willing" he'll have Russian missiles soon
    28 days ago
  2. Polish passport design provokes Lithuania and Ukraine
    19 days ago
  3. STOLYPIN: Donbas continues to be as unpredictable as it is unloved
    29 days ago
  4. Ukrainian farmers turn to Donbas veterans for protection from raiders
    29 days ago
  5. EU allows Gazprom to use an additional 40% of OPAL gas pipeline's capacity
    30 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss