Lithuania: Limited hit from Russia sanctions

Published Aug 8, 2014

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Vilnius - Lithuania's economy will likely see a limited impact from Russia's recent ban on many western food products but economic growth could slow slightly should sanctions drag on, the government said on Friday.

“We can now see that influence will not be very big,” Evaldas Gustas, economics minister, said at a news conference.

“If the process drags for longer, then due to the food products embargo, GDP growth might slow down by 0.2 percentage points.”

The government has forecast GDP to expand 3.4 percent this year.

Gustas said that Lithuanian logistics companies might suffer as about one-tenth of the trade they carry to Russia are food products, both from Lithuania and elsewhere.

Last year, Lithuanian food products exported to Russia made up only one percent of all exports of Lithuanian produced goods. - Reuters

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