According to a new report released by the Austrian Institute of Economic Research (WIFO), losses from EU anti-Russian sanctions and Russian counter sanctions have been calculated at 17,6 billion euros in 2015, and have cost Europe 400 thousand jobs.
In compact Austria the job loss figure stands at 7000, while in Germany nearly 100,000 jobs are believed to have been affected.
While data from 2016 is not yet available, back in 2015 WIFO predicted that the EU can loose as much as 100 billion euros and up to 2 million jobs due to its economic standoff with Russia.
Sighting the WIFO 2015 report, Newsweek wrote:
According to the study, the loss of the Russian market could impact jobs in the EU and non-member Switzerland over the next few years. Reduced exports across Europe will be the main cause of redundancies, however reduced tourism from Russia could also impact employment levels.
Germany would be one of the biggest losers in terms of jobs, as reduced trade with Russia could put 465,000 German jobs in jeopardy, while Poland would be second, with 335,000 jobs at risk. Italy is the third with 215,000 and though Spain and France are also in the top five, relative to their size their projected losses of 160,000 and 145,000 respectively are considerably lower. WIFO estimate that the UK could lose around 110,000 jobs.
The EU imposed economic sanctions against Russia in the summer of 2014. It is officially stated that the sanctions are linked to the situation in Ukraine, and are to be lifted as soon as the Minsk agreement is implemented. What’s often forgotten, however, is that Russia is not mentioned in the Minsk agreement, the implementation of which lies solely with Kiev and the Ukrainian people of Donbass.
Realizing that Kiev is stalling the implementation of the agreement and promised reforms, many in Europe are becoming weary of the sanctions regime. The continued loss of jobs and revenue will only exacerbate the situation and perhaps lead to a shift in policy in 2017.