Switzerland - Experts warn of hit to economy without Russian oil and gas
Date
3/14/2022 12:25:55 PM
(MENAFN- Swissinfo)
'No natural gas, no war' protestors in the capital Bern on Saturday ©keystone/peter Schneider
Renouncing Russian oil and gas would have serious consequences for the Swiss economy, an expert from the KOF Swiss Economic Institute has told a Sunday newspaper.
This content was published on March 13, 2022 - 11:53 March 13, 2022 - 11:53 Keystone-SDA/Sunday papers/ilj
- Pусский
(ru)
Что будет с экономикой Швейцарии без газа из России?
- Português
(pt)
Especialistas alertam para o impacto na economia sem petróleo e gás russo
If imports were to be cut off, for example in the wake of tougher sanctions against Russia, Swiss gross domestic product (GDP) would fall by 3-4 percentage points, spread over two years, according to calculations by KOF published in the SonntagsZeitung.External link The cost to the average Swiss: around CHF3,000 ($3,210).
A slump of this magnitude is 'big enough to cause a recession in normal times', KOF expert Yngve Abrahamsen told the newspaper. But the fact that the economy is recovering after the coronavirus could help to limit the damage, he said.
Nevertheless, Abrahamsen believes it would be“feasible” for Switzerland to rely less on Russian commodities. He said that some of the Russian supplies could be replaced by other sources. A reduction in strategic reserves could also help in a transition period. However, this would mean higher prices, warned the KOF researcher.
Neutral Switzerland last month decided to join the European Union's sweeping economic sanctions against Russian individuals and entities – in an historic step for the country. But Swiss sanctions have not specifically targeted commodities.
On Saturday, Swiss Economics Minister Guy Parmelin warned of the global consequences should sanctions be imposed on Russia for the commodities trade. He said this was not just about oil and gas, but also food, as some countries rely on grain from Ukraine and Russia.
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