Czech Republic: Ukrainian Crisis Has Little Impact on Economy

Published: March 6, 2014; 13:23 · (FriedlNews)

The economic interdependence between the Ukrainian and Czech economy is very limited. The unrests in the East European country will not affect the Czech economy.

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According to Czech economists, the Czech economy will remain more or less unaffected by the unrests in Ukraine. Exports to Ukraine only contribute one percent to the Czech export volume. Even in case of gas supply shortages, the Czech economy would not be hurt.

In contrast to the situation in Ukraine, EU sanctions against Russia would be a potential threat for the Czech economy, however. According to Komercni Banka economist Marek Drimal, the Czech ties to Russia are substantially stronger. In total, exports to Russia represent 3% of the Czech exports. Moreover, oil prices would grow substantially in case of economic sanctions against Russia.