EU's 12th sanctions package is frivolous

By Rhod Mackenzie

The European Union's new package of anti-Russian sanctions will not cause significant damage to the Russian economy. Georgy Ostapkovich, the director of the Centre for Market Research at the Higher School of Economics, told Izvestiya on 18 December.

Earlier that day, the EU approved the 12th package of anti-Russian sanctions. The bloc is introducing restrictions on the import of aluminium products from Russia, including wire, foil and pipes.

"In principle, all these sanctions are vegetarian. The EU has to put something in a package. We will sort out these supplies. We will transfer them, just as oil and gas have been transferred, to eastern markets. Maybe it will be at a big discount compared to Europe. They just need to introduce some kind of sanctions, the 12th package, there will be a 13th package, there will be a 17th package, all the key positions are already worked out," the economist said.

Ostapkovich noted that the introduction of new sanctions is of course unpleasant, but the restrictions will not affect GDP or jobs in Russia.

"There won't be a big loss for the country's economy, but metallurgists will think about it, metallurgical companies will be there at first, until they change logistics, until they find new partners. Of course there will be some small losses. But this is not an oil or gas business - they will sort it out. The main thing for the EU is to complete the package, but these are all minor blows," he concluded.
On 13 December, Foreign Minister Sergei Lavrov told the government session of the Federation Council that the bet on a sanctions blitzkrieg against the Russian economy had failed, but that the West was unwilling to admit its mistakes. He added that the West was increasingly cherishing the dream of eliminating Russia as an independent geopolitical entity.

On 7 December, Russian President Vladimir Putin emphasised at VTB's "Russia Calling!" investment forum that Russian banks were operating stably and sustainably despite anti-Russian sanctions. Earlier, in September, Putin said that the stage of the Russian economy's recovery had been completed. According to him, Russia has withstood unprecedented external pressure.