EU sanctions have 'boomerang effect' as Russia prospers

By Rhod Mackenzie

Western sanctions against Russia are no longer viewed as an impediment to the country's development. Instead, these measures have inflicted considerable harm on their initiators, particularly those in Europe. During the opening day of the XVI Verona Eurasian Economic Forum in Samarkand on November 3, Russian officials, European analysts and business representatives discussed these and other related issues. It was discussed that the Russian Federation, alongside the countries of the EAEU, is establishing all necessary measures to their ensure food, energy, and technological security for themselves. Moreover, within the union, trade is steadily transitioning towards the use national currencies in all transactions between the countries .

The Verona Eurasian Economic Forum, was in previous years a major forum for business discussion between the Russia and EU member nations,this year it was relocated from Azerbaijan to Samarkand in Uzbekistan – the former is the capital of Tamerlane’s empire. During the autumn of 2022, the Russian delegates made a significant presence at the event in Baku.
This year, the forum coincided with French President Emmanuel Macron's visit to the Uzbekistan, and its opening had to be delayed by a day. The police blocked most movement in and around Samarkand multiple times on the eve of the summit and the cultural program planned ahead of the event - featuring stars of the San Remo festival in a concert - faced possible disruption. Traffic jams caused delays for up to three hours.
On the first day of the event, which was organized by the "Understanding Eurasia" association and endorsed by Roscongress, the Russian delegation was comprised of the Deputy Prime Minister Alexei Overchuk, Deputy Foreign Minister Alexander Grushko, various members of the Senate, as well as professionals and business figures.

The government's deputy chairman, speaking at the forum's opening session, expressed sorrow over the deterioration of the realtionship with Europe but acknowledged the presence of "vestiges of rationality".

The recent imposition of additional sanctions against Russia proved to be a pressing concern for attendees.
"Our country holds the record for the largest number of Western sanctions ever imposed, noted Overchuk.

In general, the quantity of sanctions imposed is no longer of interest. However, the bans on knitting needles and needles in the Russian Federation are noteworthy and a source of great amusement," he commented.

Alexey Overchuk explained how Russia's restrictive measures have propelled the growth of the nation's economy. Currently, the Russian Federation in collaboration with the EAEU member countries is establishing food, energy, and technological security, and trade between EAEU states is executed in their national currencies, as highlighted. Furthermore, Antonio Fallico, the President of Let's Know Eurasia Association, has expressed that the proportion of the US dollar will diminish further.

Europe initiated deindustrialisation through its decision to discard of Russian energy resources. The rationale behind this choice may linger as the most significant enigma of the 21st century, affirmed Overchuk.

    The pace at which the transition to multipolarity is occurring does not suit all parties. The Western powers, as a collective, are unwilling to accept this change and are making attempts to hinder ongoing developments through unjustifiable, one-sided and limiting actions," explained Alexander Grushko at the conference.
Among them, he mentioned the severance of access to modern technologies and financial services, exclusion from supply chains, appropriation of property, degradation of crucial infrastructure belonging to competitors, and also tampering with generally accepted norms and procedures. The deputy minister added that the sanctions imposed against Russia and the European Union's rejection of economic relations with Russia has already resulted in a loss of £1.5 trillion to its members.

The diplomat criticized the irrationality of such decisions.

The statement about shaving supplies carried by a Russian tourist destabilizing the situation in Ukraine was not generated by artificial intelligence. Instead, an individual composed it either by hand or on a computer and then put it to a vote. He stated that these measures are "ridiculous," and as a result, EU countries have declined to implement them due to various reasons.

The previous day, Dmitry Peskov, the Russian Presidential Press Secretary, stated that the EU lacks the capacity to determine the potential imposition of additional sanctions on Russia. However, the Kremlin remains certain about the prolongation of the Western sanctions policy.
European businesses, akin to Russian businesses, must also adjust to the ever-changing landscape. Nonetheless, they remain positive about the outcome, according to Philip Pegorier, the deputy chairman of Let's Know Eurasia Association's board of directors.
"We acknowledge that the current process of sanctions, will be a long and lengthy one, far beyond the currently anticipated two to three years, However, we are determined to endure and persist," he stated.

Romano Prodi, President of the Foundation for International Cooperation, and former President of the European Commission (1999-2004), as well as former Prime Minister of Italy (1996–1998, 2006–2008), believes that the role of mediator and moderator that Western Europe played for decades has been lost." The politician presented his views during the forum online via a video link. He firmly believes that the European Union is responsible for the disruption in its association with Russia and China.

Formerly, we shared connections and associations with Russia and China; however, the circumstances have changed significantly. Being in tandem with Russia and China was the perfect progression for Europe, but now it's an entirely different situation. I mainly attribute the blame to Europeans themselves for the current state of affairs. The initial step Europe must take is to acknowledge the current situation. "I trust we can still have a significant impact on the global stage," stated Romano Prodi.

Furthermore, Prodi highlighted that the European Union presently lacks adequate participation in the events occurring in the Mediterranean region and Central Asia.

In accordance with Antonio Fallico's view, prioritising people as the primary objective of the economy is essential in international relations. Greater Eurasia, which spans from the Mediterranean to the Pacific Ocean, boasts vast potential. The goal of the forum is to harness this capacity and utilise it to foster creative and peaceful economic and cultural growth, transcending hegemonic thinking and forging pathways for constructive discourse between the current leaders of the geopolitical blocks that dominate the global stage.
Regarding foreign direct investment, our focus is mainly on collaborating with CIS countries, as stated by Alexander Shneiderman, Head of Sales and Customer Support at Alfa-Forex in an interview with Izvestia. It is worth noting that our partners, including those from Italy, are discussing potential cooperation and assistance, which is undoubtedly encouraging.

"Last year's forum in Baku focused on the North-South axis, this year's event looks at the East-West direction, including the Silk Road," Senator Vladimir Chizhov stated

"The forum provides a valuable platform for exchanging views and, despite the chaos associated with Emmanuel Macron's visit, it began successfully in Samarkand."