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The Hague - European employers have reacted unenthusiastically to the prospect of further economic sanctions against Russia. They fear that the measures will backfire.
The European Union (EU) is on the verge of imposing a new set of sanctions against Russia, making it much more difficult for several Russian economic sectors to borrow money from European banks. The country’s access to services from European energy companies will also be limited, and the export of technology which could have dual military and civilian uses will be curbed.
Russia has already threatened with counter-sanctions. Prime Minister Dimitry Medvedev said in Moscow that “asymmetric” sanctions may be introduced, including a ban on European airlines flying over Russian territory en route to East Asia. This would mean a long detour via the Middle East and considerable extra costs, which would have to be paid for by the passengers.
The chairperson of the Association of European Businesses (AEB), the Frenchman Philippe Pegorier, told Russian news agency Rossiya Segodnya that economic sanctions “undermine employment, the creation of wealth and stability”. Russian orders provide jobs to 300 000 people in Germany, around 100 000 in France and about a million in the entire EU.
Ingo Kramer, president of the German Federal Society of Employers’ Organisations, told the daily Rheinischer Post that his country’s expected economic growth of 2% for this year could called into question as a result of the sanctions.
Tobias Baumann, East Europe expert of the German Chamber for Industry and Commerce, said in an interview with the Neue Osnabrücker Zeitung that the climate for business has worsened considerably because of the Ukrainian crisis.
“The sanctions are already causing insecurity.” He foresaw problems for especially the automobile and machinery industry.
And Hans de Boer, chairperson of the Dutch employers’ organisation VNO-NCW, told the daily Financieele Dagblad that Europe in general is rather reticent towards sanctions, because European companies export much more to Russia than US firms.
“The effectiveness of sanctions is limited. They do not work,” he said. “If you know Russia, you realise that the Russians stand behind (President Vladimir) Putin. The man is more popular than ever before.”
- Fin24
The European Union (EU) is on the verge of imposing a new set of sanctions against Russia, making it much more difficult for several Russian economic sectors to borrow money from European banks. The country’s access to services from European energy companies will also be limited, and the export of technology which could have dual military and civilian uses will be curbed.
Russia has already threatened with counter-sanctions. Prime Minister Dimitry Medvedev said in Moscow that “asymmetric” sanctions may be introduced, including a ban on European airlines flying over Russian territory en route to East Asia. This would mean a long detour via the Middle East and considerable extra costs, which would have to be paid for by the passengers.
The chairperson of the Association of European Businesses (AEB), the Frenchman Philippe Pegorier, told Russian news agency Rossiya Segodnya that economic sanctions “undermine employment, the creation of wealth and stability”. Russian orders provide jobs to 300 000 people in Germany, around 100 000 in France and about a million in the entire EU.
Ingo Kramer, president of the German Federal Society of Employers’ Organisations, told the daily Rheinischer Post that his country’s expected economic growth of 2% for this year could called into question as a result of the sanctions.
Tobias Baumann, East Europe expert of the German Chamber for Industry and Commerce, said in an interview with the Neue Osnabrücker Zeitung that the climate for business has worsened considerably because of the Ukrainian crisis.
“The sanctions are already causing insecurity.” He foresaw problems for especially the automobile and machinery industry.
And Hans de Boer, chairperson of the Dutch employers’ organisation VNO-NCW, told the daily Financieele Dagblad that Europe in general is rather reticent towards sanctions, because European companies export much more to Russia than US firms.
“The effectiveness of sanctions is limited. They do not work,” he said. “If you know Russia, you realise that the Russians stand behind (President Vladimir) Putin. The man is more popular than ever before.”
- Fin24
