Advisor to the SEB Bank president, financial analyst Gitanas Nausėda says that the impact of Russia's food product embargo on the Lithuanian economy has been greatly overstated.
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According to estimates by SEB Bank, Lithuania is much more vulnerable to Russia's sanctions than other Baltic states, with over 21 percent of Lithuania's export going to the Russian market, while the food product embargo affected 4 percent of all exported produce to Russia. Nausėda, however, thinks that the society has a misleading belief that the Russian sanctions automatically mean a sales decrease.

"This could only be in the worst case scenario when the market cannot quickly refocus on another market or when such refocusing becomes financially disadvantageous," Nausėda said. "Some companies started adapting to increasingly chilly relations with Russia ahead of the introduction of the sanctions."

The financial analyst says that at the moment the Russian market is particularly relevant to Lithuania's machinery manufacturers and food producers, but even these sectors' volumes are not that high: in 2014, only 13.3 percent of all machinery and equipment made in Lithuania was exported to Russia.

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