DNB: The sanctions against Russia will have little effect on the economy of Western countries

DNBPhoto: Terje Pedersen / NTB
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On Tuesday, Western countries imposed a series of economic sanctions on Russia. DNB believes that the move will not have major consequences for their economies.

“Most sanctions hardly have the major consequences for macroeconomic developments in the West,” the bank wrote in an analysis on Wednesday.

DNB justifies its assessment with the fact that the large European countries have low exports to Russia.

“But Russia is a significant exporter of both oil and gas and accounts for about 35% of all European gas imports, and the biggest consequences will probably, therefore, be seen there,” DNB warned.

One consequence may be higher food prices because Russia and Ukraine are large exporters of wheat and maize, as well as a faster rise in interest rates due to already high inflation and austerity tendencies of central banks.

DNB also sees no signs of a stock market collapse as a result of the dramatic situation in Ukraine.

Source : © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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