- Professional News
- 22 August 2014
Sanctions against Russia may affect ports and shipping companies
The Russian economy is expected to become heavily influenced by the third wave of sanctions imposed by the EU and the USA. The consequences may very well affect the shipping industry as well.
On Tuesday, 29 July, the so-called step 3 sanctions against Russia were finally adopted. This took place following a unanimous request from the 28 EU ambassadors to the European Commission to draft the legislative texts for such sanctions.
The step 3 sanctions will, for example, affect Russian businesses' and banks' access to EU's financial markets, arms trade, EU's export to Russia of equipment capable of use in arms production, and export of technology for the energy industry.
New sanctions to hit hard
Most financial experts agree that the previous sanctions imposed have not made a particularly large impact on the Russian economy.
This position, however, will now have to be reconsidered, and both Russian ports and shipping companies calling on such ports are likely to be directly affected by the consequences of such sanctions.
Therefore, slow economic growth is assessed to imply that many investments will be postponed and that Russian businesses will not buy any new products and materials but instead tap into stocks.
Consequently, a decline in orders within the shipping industry is likely.