Sanctions against Russia 'economically costly'

VIENNA - Sanctions against Russia over the conflict in Crimea would prove economically costly and would be detrimental to all sides, Austrian experts said Thursday.

Ukraine crisis

Director of the Institute for Advanced Studies (IHS) Christian Keuschnigg told the APA, Russia is "too important" to enter into a trade war with, and retaliatory measures are to be expected if sanctions are implemented.

He added that about 550 Austrian companies were currently registered in Russia, and that Austria had invested almost 12 billion U.S. dollars in the country, also its tenth most important export market.

President of the Austrian Federal Economic Chamber Christoph Leitl agreed, adding those that think they can make Russian President Vladimir Putin capitulate through threats are "naive."

"Business should not be used as a weapon, but rather as a bridge of understanding,"he said.