Two-thirds evade embargo impact, says business survey

Most of Latvia’s enterprise sector, close to 67% of surveyed businesses taking part in the Citadele Index poll revealed that Russia’s food imports embargo on products from the European Union and western states have not affected their bottom line, reported national information agency LETA Thursday.

Of the surveyed companies, 22% responded that they have felt a ‘slight’ negative effect from the embargo, whereas 8% said they have felt a ‘great’ negative effect.

A 1% sliver of respondents actually indicated ‘slightly’ positive effects from the countervailing trade-war move on Russia’s part after western nations imposed third-level sanctions on trade with its financial, military and technology sectors.

The Citadele Index survey’s results show that small enterprises are most often negatively affected by the embargo. Altogether 33% of small enterprises responded that they have felt negative effects from the Russian response, 8% felt ‘great’ negative effects, while 25% felt ‘slight’ negative effects.

Larger-scale firms seem to have escaped the brunt of the impact with 74% admitting no effect from the embargo, 14% acknowledging slight negative effects and 3% great negative effects.

Even 3% of surveyed large companies said they had felt a ‘great’ positive effect from the embargo, with 6% joining them feeling ‘slightly’ positive effects.

A breakdown by sector reveals that the retail trade is suffering most from the embargo – with 29% responding that they feel slight negative effects and 7% great negative effects.

Meanwhile the service (20% feeling slight, 8% great negative influences), manufacturing (19% feeling slight, 7% great negative influences), and construction (16% feeling slight, 4% great negative influences) sector respondents claim to have avoided more significant suffering in their businesses caused by the food imports embargo to Russia.  

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