Russia Retaliation Inflicts Worst Euro-Area Scars on Finland

Finland, the euro nation most dependent on trade with Russia, is now bracing itself for the economic shock that President Vladimir Putin’s decision to retaliate against western sanctions is set to cause.

Finnish exports to Russia have already contracted since the crisis in Ukraine intensified in March and after European and U.S. restrictions were agreed on to isolate Russia’s economy. In a counter-move, Russia slapped import bans today on an array of foods, including dairy and cheese. With 14 percent of Finland’s trade coming from its eastern neighbor, those developments are exacerbating the Nordic country’s fight to emerge from its second recession since 2008.