Lithuania and other Eastern European economies with close links with Russia could be seriously affected by a slowdown in the Russian economy or the sanctions imposed by the West against Moscow, analysts of the International Monetary Fund (IMF) have said.
IMF
© Reuters/Scanpix

“For most European countries, Russia is not a major export market. Therefore, slower growth in Russia would probably not hurt them too much. However, for many of Russia’s immediate neighbors such as Belarus, Ukraine, Moldova, and the Baltics, whose exports to Russia exceed 5 percent of their respective GDP, the impact could be substantial,” a post in iMFdirect, the IMF’s global economy forum, reads.

Many Eastern European countries, including Lithuania, depend heavily on both Russian gas and all energy supplies in general.

Foreign direct investment (FDI) from Russia amount to 2–5 percent of GDP in Lithuania, as well as Latvia, Ukraine, Serbia and Bosnia and Herzegovina

In terms of general risks related with the slowdown of the Russian economy and the consequences of Western sanctions, Lithuania ranks second after Belarus among the countries reviewed in the post. Negative repercussions for Lithuania stem from its dependence from Russian gas as well as from bilateral trade with Russia.

BNS
Leave a comment
or for anonymous commenting click here
By posting, you agree to terms
Read comments Read comments

PM to invite European retailers to invest in Lithuania

Lithuanian Prime Minister Saulius Skvernelis says he plans to invite 12 European major retail chains...

Akmenė awaiting ground-shaking investment

Lithuania's northern district of Akmenė barely lags behind other cities in Šiauliai County in terms...

Minimum wage may rise to EUR 430 next January - PM

Lithuanian Prime Minister Saulius Skvernelis says that, based on updated earnings growth forecasts,...

Smart Continent LT to assess Vilnius' attractiveness among investors

Smart Continent LT will assess the attractiveness of Vilnius and its five foreign competitors among...

Tax credit brings 25 million-worth of investment to Lithuania – film center

A tax credit has brought in 24.4 million-worth of investment from foreign film makers in Lithuania...