Lithuania withstands Russia’s embargo

Lithuanian milk
DELFI / Karolina Pansevič

Swedbank’s chief economist Nerijus Mačiulis thinks that Russia’s embargo posed serious challenges to some food producers and agriculture, transport and logistic companies, but it did not shake the economy as a whole, noting that employment and wages continued to grow.

SEB Bankas’ chief analyst Tadas Povilauskas says, however, that Lithuania was among the EU countries the most affected by Russia’s embargo. An indication of this is that Lithuania’s economic growth decelerated to 1.8 percent in 2015, from 3.5 percent in 2014, the sharpest slowdown of all EU countries.

“Certainly, we can’t blame everything on Russia, but Russia’s sanctions and its economic decline had a major impact of up to 1 pct of GDP on the slowdown of economic growth,” he told the paper.

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