RIGA, October 6 (RIA Novosti) - Latvia is dependent on Russian transit by 80 percent, and if it stops, the ports and the railroad in the country will decline, Latvian Economy Minister Vjaceslavs Dombrovskis told RIA Novosti.
"If we are talking about the transit, for example, of the Russian coal, which goes by rail through our ports to the Netherlands and the UK, then we have no alternative to Russian transit. We cannot dig out the rails and lay them elsewhere," Dombrovskis said, when asked about the situation in the Latvian economy in the event Russia and the European Union continue to use the language of sanctions.
Latvia's dependence from Russia is determined by its geographical location, the minister said.
"So, if Russia blocks transit, then practically the entire industry will decline - that is, ports and railways. This means tens of thousands of jobs," Dombrovskis said.
About 12 percent of Latvian GDP comes from the provision of cargo transit services. The turnover in this industry is estimated at about 2.8 billion euros [about $3.5 billion].
Relations between Russia and the West deteriorated amid the Ukrainian crisis, with Moscow repeatedly being accused of meddling in Ukraine's internal affairs. Following Crimea's reunification with Russia, the United States introduced a first round of sanctions against Russia, with its allies later following the move and drawing up their own blacklists.
In August, responding to western sanctions Moscow implemented a one-year ban on certain food imports from the European Union, the United States, Australia, Canada and Norway.
