Russia’s full-scale aggression against Ukraine has significantly impacted the eastern regions of the European Union, as concluded in the assessment of the influence of Russia’s aggression on border regions.
The assessment was performed following the request from the Ministry of Environment Protection and Regional Development.
It is concluded in the assessment that the national economies of Baltic States were impacted by the Russian-Ukrainian war more than other EU member states.
This is because of the high energy dependence of Baltic States on Russia, the drop of the role of transport and logistics sectors in the economies of those countries, as well as the decreasing desire of investors to invest in eastern border regions, which can cause long-reaching consequences for the medium-term economic development of those countries.
In regards to Latvia’s eastern border, the assessment concluded that the consequences of the Russian-Ukrainian war have caused economic isolation from eastern and southern regions, shutting down existing transit corridors and export markets.
Given that the cohesion policy of the less developed regions requires faster growth, increased attention should be paid to promoting the competitiveness of these regions.
The assessment also covers the opinions of businessmen active in various sectors about the war and ways they have had to adapt. One of the most notable opinions is that Baltic States remain largely an uncertainty for foreign investors and buyers – specifically in regards to information about businesses.
The assessment mentions that often foreign clients do not understand the reasons behind growth of prices of goods. This makes them choose other suppliers. Some businesses have managed to successfully switch to other export markets. Nevertheless, some sectors have experienced a significant growth of costs because of the switch.
As previously reported, Latvian Prime Minister Evika Siliņa has issued an order to compose a special thematic committee in connection with the socio-economic development of the eastern border of Latvia and the strengthening of security.
Also read: Ukraine may have talks with Russia eventually
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