Worst scenario for Romania if EU applies economic sanctions to Russia: 1.6% drop in GDP growth

The future European Union sanctions on Russia would, in a worst case scenario, negatively impact Romania's economic growth by up to 0.6 percentage points in 2014, according to an evaluation by the European Commission, quoted by HotNews.ro. But Romania has a limited exposure overall to potential economic sanctions on Russia. The Commission sent individual evaluations to all EU member states last week, detailing the possible impact on economic sanctions to Russia. For Romania, three scenarios were taken into account: a mild one, where the economy would go down 0.1 percentage points in 2014, and would not be affected in 2015. The average impact would trigger a drop of 0.3 percentage points in GDP growth in 2014, and 0.1 percentage points in 2015. The worst scenario would involve the 0.6 percentage points drop in growth this year, and a drop of 0.3 percentage points in 2015. Based on responses from member states, the EC will draft a document which will be the core for potential joint decisions on Russia in case the Russia authorities decide to increase pressures over Ukraine. editor@romania-insider.com