Rutkaste explains what would happen if Latvia stopped exporting to Russia on one day

“We already calculated the scenario of the consequences of breaking economic ties with Russia two years ago, when Russia invaded Ukraine, about which we also informed the politicians,” Uldis Rutkaste, head of the monetary policy department of the Bank of Latvia, revealed in the TV24 program “Price of money”.

“If Latvia were to stop all exports to Russia in one day, assuming that companies would find an outlet in other countries, then the reduction would be about 2% of GDP. I agree with the opinion that transit is a declining industry. And then there is the question of where we invest our resources, meaning both money, capital and labor – in a declining sector or give the opportunity to move to sectors that have a growth perspective,” explains the head of the monetary policy department of the Bank of Latvia.

Continuing the discussion, Minister of Justice (2010-2011), Minister of Regional Development and Municipal Affairs (2006-2007), Minister of Economy (2006) and businessman Aigars Štokenbergs does not hide his surprise at the decision of the Freeport of Riga to announce the lease of 179 hectares of its territory to install solar panels. “Why not factories, warehouses? Are we running out of space? Why is there a solar park at the Liepāja airport, which is an industrial area? Why can’t solar panels be placed on warehouse roofs?” asks Stockenberg.

“If we understand that the business with Russia in the whole field of railways and logistics, which we have, is high risk now and even higher risk in the future, then the policy of supporting this sector is wrong. We maintain a high-risk business, actually taking this money away from the things that should be done to create the environment where people could work in the future,” economist and rector of the University of Latvia Gundars Bērziņš expresses his opinion in the TV24 program “The Price of Money”.

The “Price of money” project is financed by the Media Support Fund from the funds of the Latvian state budget. AS “TV Latvija” is responsible for the content of the program “Money Price”. SIF_MAF2024