Industryweek 7176 Finland Seek Compensation If Russia Sanctions Hit Economy

Finland to Seek Compensation If Russia Sanctions Hit Economy

Aug. 6, 2014
Finland will seek compensation from the EU if last week's sanctions on Russia lead to an economic crisis in the country, Finnish Prime Minister Alexander Stubb said Wednesday.

ESPOO, Finland -- Finland will seek compensation from the EU if last week's sanctions on Russia lead to an economic crisis in the country, Finnish Prime Minister Alexander Stubb said Wednesday.

"It is without doubt clear that if sanctions hit Finland disproportionately, we will seek support from our European partners," Stubb said at a press conference. "We have to stick to the principle of economic solidarity. In practice, this means that those member states most affected by the sanctions should also receive some form of compensation."

Stubb did not specify what type of compensation he would demand.

Finland struggled with recession in 2012 and 2013 and is already feeling the effects of weaker trade with neighboring Russia since the beginning of the Ukrainian conflict.

The Bank of Finland estimates a 3% fall in the Russian economy would shrink Finland's output by 0.5%.

Russia has already halted some food imports from a range of European countries and has threatened to limit the amount of chicken products it buys from the United States.

The steps announced by the Kremlin also forbid companies in Europe and the U.S. from striking future deals in Russia's vital oil and arms sectors.

Copyright Agence France-Presse 2014

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