'Baltic Wall' looms large as banker frets about Latvian image

Riga, Latvia

RISING tensions over Ukraine and the prospect of more sanctions against Russia are threatening to erect a "Baltic Wall" that would harm Latvia's ties with some financial centres, according to the Baltic International Bank.

Business in the nation of 2 million, traditionally a banking hub for the former Soviet Union, is at risk because of the security picture in Ukraine, Valeri Belokon, the bank's chairman, said in an interview. Proximity to Russia, the origin of some of its clients and reputational issues have led to Latvia being unfairly labelled higher-risk, he said.