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Western sanctions against Russia may hit Belarus, economist warns

Western sanctions imposed on Russia over its annexation of Crimea and support for armed separatists in Ukraine's southeast may have consequences for the Belarusian economy, Katsyaryna Barnukova, an economist at the Belarusian Economic Research and Outreach Center (BEROC), warned on Monday.

She said that the sanctions had already led to a capital outflow from Russia and slowed down its economic growth. As a result, Russia's demand for Belarusian-made equipment may decline amid uncertainty over the economic situation, she predicted.

In addition, Ms. Barnukova warned, the capital outflow from Russia will reduce the possibility of more Russian financial aid for Belarus.

Investors are expected to take up to $90 billion out of Russia because of the sanctions this year.

Last week, the United States announced a new round of sanctions against Russia that target major banks and defense and energy companies.

More sanctions may be introduced by the United States and the European Union later this year. // BelaPAN