Trade sanctions between the European Union and Russia have reduced bilateral trade. But have Russia’s counter-sanctions hurt Europe’s trade?
What has been the impact of Russia’s counter-sanctions on Europe’s trade? At this event we will discuss the effect on Estonia’s trade from these sanctions. Given its history and proximity, Russia has represented as significant part of Estonia’s trade. The presentation by Meelis Kitsing will assess the impact of recent Russian counter-sanctions on Estonia in a historical and theoretical context. Even though Estonian exports to Russia declined in 2014, the economic impact of Russian counter-sanctions was relatively insignificant. Most of Estonian exports to Russia are re-exports where relatively little value-added is being produced in Estonia. The counter-sanctions impacted primarily exporters of dairy and fish products where decline in total value of exports was relatively insignificant. Russian sanctions created incentives for Estonian entrepreneurs to find new markets and diversify export destinations.
Meelis Kitsing is head of economic analysis at the Ministry of Economic Affairs and Communications in Estonia and a lecturer at the Department of Economics and Finance at the Estonian Business School. He earned his graduate degrees from London School of Economics in UK and Fletcher School at Tufts University in the US.