European countries are weighing what sanctions should be imposed on Russia if it invades Ukraine, something the Kremlin has denied it intends to do. Tighter sanctions, and possible retaliations by Russia, would hurt not only Russia’s economy, but also its trading partners. About 0.8% of European Union economic activity is directly linked to Russian imports, according to calculations by Bloomberg Economics based on the OECD’s TiVA database for 2018. Economic sanctions on Russia would affect this source of demand for European goods and services, particularly for eastern European countries and Cyprus.
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