Russia sanctions could cost Israeli exporters $150m

The Israeli Credit Insurance Company Ltd. (ICIC) warns that the worsening crisis in Ukraine could harm Israeli exports.

It estimates that if Western countries declare sanctions against Russia, European exports would fall by 15% and the $1 billion in Israeli exports to Russia would fall by the same amount, or $150 million.

ICIC's estimate is partly based on the nature of Israeli exports to Russia and an analysis by its controlling shareholder, Euler Hermes.

Economic sanctions against Russia if the situation in eastern Ukraine deteriorates will reportedly include an arms embargo, and restrictions on the import and export of certain goods and of capital inflows.

Most Israeli exports to Russia are agricultural produce, chemicals, and telecommunications equipment.

There have been reports about defense deals for the supply of Israeli unmanned aerial vehicles (UAVs) to Russia, and that the Russians are very interested in procuring other Israeli military systems.