Brexit entails serious impacts on global economy - Russian diplomat

The first signs of serious changes in the global economy and finance are already visible

Britain’s withdrawal from the European Union, commonly referred to as Brexit, is bound to entail serious changes in the global economy and finance, the first signs of which are already visible, Russian Permanent Representative to the European Union Vladimir Chizhov said on July 3.

"Serious changes both in politics, economics and financial activities have begun indeed," he said in an interview with Russia’s NTV television channel.

"Although Britain has never been part of the Eurozone, London’s City, nevertheless, has always been a euro settlements center. The European Bank has warning it will stay such no longer," the Russian diplomat noted.

He said a serious sign of upcoming changes is the outflow of not only money but also people from London. "Not only money is being withdrawn from London. London-based financial corporations have begun to withdraw their personnel: some left for Dublin, some - for Luxembourg," Chizhov said, adding that this is just a beginning.

As many as 51.9 percent of UK citizens (17.41 million people) voted on June 23 for leaving the European Union, while 48.1 percent (16.14 million) were in favor of remaining part of the bloc. The referendum is of non-binding character, which means that its results can be either endorsed or turned down by parliament. Moreover, another referendum may be organized.

Following the British referendum, a number of European leaders called on London to immediately begin talks on withdrawal from the European Union. British Prime Minister David Cameron, who announced his resignation after the referendum, said unequivocally it is to the job for a new premier who will take office by early October.


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