The conflict in Ukraine could hit Slovakia as well, in particular in the form of a gas and oil supply cut, TASR learnt on Tuesday. “The weakest point with direct and rapid impact on our economy appears to be the transit of gas and oil. Approximately 75 percent of oil and gas imported to Central Europe comes from Russia via Ukraine. Slovak dependence is even higher, and we still remember the previous gas crisis in 2009”, said CSOB bank analyst Marek Gábriš, noting that only 0.7 percent of Slovakia’s exports go to Ukraine.
Meanwhile, Slovakia has stronger economic ties with Russia, with exports to that country representing 4 percent of the total and 10.1 percent of imports. “An imminent military conflict wouldn't be positive for anyone and would certainly affect the performance of both economies”, said Gábriš. The key for Slovakia is how the conflict would affect transit routes for oil and gas directed via Ukraine. “Also the exports of some industries, particularly the engineering industry, could be threatened. However, only in the case of the closure of trade routes or economic sanctions against Russia”, added Gábriš. Economic contagion from Ukraine could spread to Central Europe also through the financial sector. “Direct financial links to Ukraine are relatively weak, however. The most exposed financial sector in Central Europe is in Hungary”, stated Gábriš.
