Reuters

Helsinki

The Ukraine crisis has not had much impact on international financial markets so far, although it has hit Ukraine and Russia, European Central Bank Governing Council member Erkki Liikanen said yesterday.

Russian annexation of the Ukrainian region of Crimea has led to sanctions against Moscow by the European Union and US.

Asked about the impact of the crisis in a TV interview with Finnish national broadcaster Yle, Liikanen said: “For international, European financial markets, its impact has not been large.

It has been very large for Ukraine, large for Russia, but on average it has been limited internationally.”

The ECB has already discussed the crisis, said Liikanen, who also heads the Bank of Finland.

Turning to further, possibly harsher European Union sanctions against Russia, he said EU countries should share the impact equally.

“It is extremely important that any EU sanctions treat all member states in an equal manner,” he said.

“One cannot think that those have already taken the biggest hit would suffer more than the others.”

Russia is one of Finland’s largest trading partners, with about one-tenth of Finnish exports going to its eastern neighbour. Finnish industry is dependent on Russian raw materials.

“The international uncertainty hits us strongly,” he said. The Finnish economy has seen two consecutive years of declining gross domestic product.

“What has happened in Russia has already had an impact on the Finnish economy,” he said, citing increased uncertainty, a weaker rouble and plunging stock prices in Russia.