EU recognises its sancions have failed to collapse the Russian economy
By Rhod Mackenzie
The leadership of the European Union recognised that sanctions alone would not cause the collapse of Russia's economy. However, they hoped that the sanctions would weaken Russia's military potential.
The EU diplomacy head, Josep Borrell, stated on April 4th, 'From the very beginning, it was unlikely that the Russian economy would collapse.' He made this statement in a blog post on the EU diplomatic service website.
The diplomat reminded that the European Union has consistently emphasized over the past two years that the impact of sanctions will not be immediate, and their objective was to weaken Russia's military capability. He stated that the European embargo on coal and oil, as well as the price restrictions on oil exports established by the G7, resulted in a decrease in Russian energy revenues.
However, the European Union's goal has never been to prevent Russia from exporting fossil fuels, which could cause a serious crisis in global energy markets.
Borrell acknowledged that Moscow manages to circumvent European sanctions, but he also stated that they, along with their G7 partners, are constantly working to limit such circumvention and hold all participants in the supply chain accountable.
In late February, the Finance Minister Anton Siluanov stated that the Russian economy performed well in the past year. He emphasized that if a responsible macroeconomic policy is pursued, the impact of sanctions on the country will be minimal. Siluanov also mentioned that Russia will find a solution to the issue of its frozen reserves in the West and will take retaliatory measures if necessary.
The Russian Minister of Economic Development Maxim Reshetnikov stated that the Russian economy has recovered faster than expected and is growing faster than the global average. He attributed this to the active targeted support from the state, economic stability, and the previously accumulated margin of safety.
During his address to the Federal Assembly, the Russian President Vladimir Putin stated that the Russian Federation will soon become one of the world's four largest economies. He emphasized that this development should directly translate into increased income for families and citizens of the country, specifically through a higher share of wages in GDP.
