The demand for Belarusian goods exported to Russia will fall.
It was said by Katsiaryna Barnukova, an economist at the Belarusian Economic Research and Outreach Center, BelaPAN reports.
The expert turns attention to the fact that the West's sanctions already led to the outflow of capital from Russia and slowed down the economic growth in the neighbouring country. “We export investment goods to Russia (in particular, products of the engineering industry). In the current uncertain situation that can now be seen in Russia, demand for such products declines. So, this part of our export becomes vulnerable,” Barnukova said.
If the capital outflow continues in Russia, it may hit Belarus financially. “The capital outflow means Russia will have less opportunities to provide financial aid to our country,” the expert forecasts.
According to the Russian Ministry of Economic Development the capital outflow caused by the West's sanctions can reach $90 billion in 2014. It can lead to a decline in the rate of economic growth, the ministry says. Russia's GDP will be 0.5% this year, according to the ministry.
The United States imposed additional sanctions on Russia last week over the situation in Ukraine. Russia's big companies – Rosnet, Gazprombank and Vnesheconombank – were hit by the sanctions. Russian banks will be cut off medium and long-term financing, and US persons will be prohibited from dealing in new debts or new equity of these banks.
It's possible that the West will impose new sanctions on Russia in the nearest days. The issue was discussed by leaders of the US, Germany and the UK after a passenger plane flying from the Netherlands to Malaysia had been shot down last week in eastern Ukraine in the area controlled by separatists. Western politicians accused Russia of supplying weapons and supporting Ukrainian separatists that destabillises the situation in Ukraine.