Trouble to the East: Implications for European Trade and Investment

With the Crimean crisis ongoing, any European companies that continue to trade with and operate in Russia and Ukraine will face increasing difficulties. In Russia, these are principally politically motivated. In Ukraine, they arise from the risk of insolvency and the fallout from the Crimean crisis. In the short term, the EU should mitigate costs for businesses, and strive to restore confidence in Ukraine’s economy in the longer term. EU Member States should also act together to counter any economic retaliation by Moscow to European sanctions and actions in Ukraine.