MOSCOW, May 14 (RIA Novosti) – The escalation of the conflict in and around Ukraine is a major risk for the global economy, Europe's largest insurance company Allianz SE said Wednesday.
Despite favorable growth indicators, the company said it would not underestimate global economic risks and put the escalation of conflict between Russia and Ukraine, which could lead to the expansion of sanctions on both sides, at the top of its list of risks.
Since March, the US and EU have imposed targeted sanctions against Russian officials, freezing their assets and banning them from obtaining visas, as well as against 17 Russian companies following a referendum in Ukraine’s Crimea, in which voters overwhelmingly supported secession and reunification with Russia. On Monday, the EU added two Crimean companies and 13 individuals to a sanctions list over the escalating situation in Ukraine.
The leaders of the G7 group of nations have further threatened Russia with sanctions against key sectors of the country’s economy in the event of a further escalation in the Ukrainian crisis.
Allianz SE reported on Wednesday a 3.9 net profit decline year-on-year to 1.6 billion euros in the first quarter of 2014. Its revenue rose 6 percent to 33.96 billion euros.
The 120-year-old German insurer is one of the leading insurance companies in the world. It operates in Russia, where it is represented by Allianz, Allianz Life, Medexpress and ROSNO-MS, as well as in Ukraine.
