Walking Away From Belarusian and Russian Markets Is Costing Latvia Dear

Giving up the markets of Belarus and Russia is costing Latvia dear.

The sanctions policy against Belarus and Russia has played a cruel joke on Riga. The restrictions introduced provoked a deep crisis in the civilian sector of Latvia’s own economy.

Because of the loss of eastern markets the freight turnover of the state railway company fell by almost 18 percent. The loss amounted to almost €8 million. The situation may worsen still further. There are plans to raise tariffs on Russian grain transit fourfold, which would make that route completely unprofitable.

There are problems at the flagships of the sector as well. The crisis led the national air carrier airBaltic into bankruptcy, a reduction of staff and a reduction in the number of aircraft. The sanctions policy also provoked the complete liquidation of a large local power-tool plant.