Latvia's Industry Affected by Russian – Ukrainian Conflict - PM

Latvia's industry experiences the negative effects of the conflict between Russia and Ukraine, the country's Prime Minister Laimdota Straujuma said.

"Of course, we have trade problems. Our industry feels the effects of the conflict already today, when neither the European Union nor Russia have taken any retaliatory measures, because the Russian ruble declines and Ukraine has no more trade as before," she said in an interview with the Latvian television on Tuesday, cited by Itar-Tass.

The European Union might impose sanctions against Russia in case of escalation of tensions in Ukraine, Straujuma said, adding that these would be economic sanctions embracing four sectors - arms trade, energy, trade and finances.

"Our government has already considered concrete risks for our economy. I spoke of these risks at the Council of the European Union," Straujuma said. "Energy is the most difficult issue for us. If sanctions are imposed, we, possibly, will need the EU support."

Russia signed the agreement on the accession of the Republic of Crimea and Sevastopol on March 18, which caused retaliatory sanctions from the United States and the European Union.