AEB reaction to Medvedev’s statement on sanctions

AEB reaction to Medvedev’s statement on sanctions

RBK – The representative of European companies operating in Russia: Association of European Businesses (AEB) has published a statement concerning Dmitri Medvedev’s warning of potential sanctions to be implemented against western companies operating in aviation, shipping and automotive industries. In the statement, it has been emphasised that such measures will have negative reflections not only on the economies of the countries that will be exposed to sanctions, but also on Russian economy.

The statement continues as follows: “The introduction of such measures could lead to a serious decline in production volume and the number of workplaces, affecting not only the manufacturers themselves, but also suppliers and retailers working in these sectors. All this would harm not only the business of the companies concerned, but also fiscal revenues through the loss of tax and duty payments.”

As one may remember, Dmitri Medvedev had made a statement on several possible sanctions against foreign automotive companies in Russia, on 07 August. The Prime Minister avoided to go into details about the types of sanctions to be implemented, however stated that conscious steps will be taken.

According to AEB data, the Russian automobile market has shrunk by 22.9% in July. The shrinkage rate for the first seven months is 9.9%, on the other hand. There are concerns that the market shrinkage will continue increasingly, in the event of sanctions against European companies.