Effects of Russian sanctions on UK to be limited
Wednesday, March 26, 2014
LONDON – The outflow Russian capital from global finance centers in the face of sanctions imposed from the west is unlikely to have a significant impact on the city of London's financial center, according to analysis from Open Europe, an independent think tank.
Despite being home to a disproportionate number of so-called Russian oligarchs the stock of Russian assets held in the U.K. is only around 32 billion euros (£27 billion), which constitutes 0.5 percent of total European assets invested in London, highlighting that, while the numbers sound large, they are far from critical to the country.
Open Europe's analysts and economists believe the risks to the U.K. and its financial sector from sanctions against Russia is minimal as the financial, business and insurance services provided to Russia constitute only 1 percent.
Other countries, such as Germany, one of Russia's, most important trading partners, with a trade turnover of 77 billion euros (£64 billion) and a substantial reliance on Russian energy imports stands to lose more from the EU's sanctions.
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