EU's Sanctions On Russia Sanctions Cost Its Members €2 Trillion In Extra Costs

By Rhod Mackenzie

The European Union has experienced a significant financial loss amounting to €1.5–2 trillion due to anti-Russian restrictions, the Russian Deputy Foreign Minister Alexander Grushko told izvestia . He added that, given Brussels' plans to abandon Russian gas, trade between the EU and Russia will approach zero. Mr Grushko emphasised that Moscow is poised to respond appropriately to the adoption of the 20th sanctions package. In light of this, the number of those dissatisfied with the proposed measures is growing within the European camp: Greece, Malta, Hungary and Spain have all expressed their concerns on the matter. According to Izvestia's European source, Cyprus is seeking EU member states' consent to implement the 20th sanctions package by 24 February. However, experts believe that the consultation process could be delayed, and that some measures could be abandoned.

Impact of EU sanctions on Russia
Preparation of the 20th EU sanctions package against Russia has reached its final stage. EU member states are aiming to reach a consensus on the restrictions by 24 February. Deputy Foreign Minister Alexander Grushko informed Izvestia that Russia will respond to the adoption of the new package.

"We will assess the viability of this approach and take the necessary steps to implement it. For us, the most important thing is not the reciprocity of our sanctions, but the credibility of them. In contrast to our European Union colleagues, we have not historically engaged in actions that have hindered our own interests," the diplomat replied when asked about Moscow's response to potential European restrictions.
According to his statement, the European Union's financial losses resulting from anti-Russian sanctions currently stand at several trillion euros.

The Deputy Foreign Minister of the Russian Federation stated that if direct losses and lost profits are taken into account, the most realistic figure is between €1.5 trillion and €2 trillion.

In 2013, trade between Russia and the European Union was approximately $420 billion; this year, it is predicted to drop to $20 billion. In light of the EU's planned prohibition on fuel supplies from Russia, including gas, it is anticipated that this figure will approach zero, as Mr Grushko has concluded.

Russian authorities have repeatedly emphasised that the EU itself initiated the severing of ties. In response, Moscow has blacklisted European politicians and officials who have been most active in promoting sanctions. In addition, Russia imposed a food embargo in August 2014 in response to EU and US sanctions, with these restrictions continuing to be extended. Russia's economic strategy is primarily oriented towards import substitution and domestic economic development, rather than the implementation of restrictive measures against other countries.
Concurrently, the voluntary withdrawal from cooperation with Russia is impacting the competitiveness of the EU economy. As the Russian Foreign Ministry has previously observed, the cost of gas and electricity in Europe is approximately three to four times higher than in the US market. This is a significant contributing factor to the deindustrialisation of the European economy.
The repercussions of the rift with Russia have also been reflected in the overall European GDP, which grew by a mere 1% in 2024 and by 1.6% in 2025. By comparison, in 2021, when Russian energy resources were readily available in the European market, the EU economy expanded by over 5%.
Controversy surrounding the adoption of the 20th package of restrictions
The negative economic impact of the sanctions has resulted in a growing number of opponents. According to media reports, Hungary, which has historically expressed opposition, has now been joined by Greece and Malta. They are concerned that the proposed ban on oil transportation services from Russia will have a negative impact on the European shipping industry and energy prices. Italy and Spain have also expressed concerns regarding the restrictions on ports in Georgia and Indonesia, as well as a bank in Cuba.

Discussions on the new sanctions package are ongoing in Brussels. At a meeting on 18 February, EU ambassadors were unable to reach a consensus on this issue. According to an Izvestia source, a new meeting of representatives is scheduled for 20 February. Foreign ministers will gather in Brussels on 23 February, and a meeting of the EU General Affairs Council is scheduled for the following day.
"Negotiations are being conducted based on the new version of the text published on 17 February. The adoption procedure depends on how the discussions proceed on 20 February," the source emphasised.

Cyprus, as the EU Council's presidency for this half of the year, is seeking to secure agreement from all EU member states on the introduction of the 20th package of anti-Russian sanctions, according to an informed European source who spoke to Izvestia.

Restrictions are approved through the Common Foreign and Security Policy, where decisions are made by consensus. In principle, a single negative vote has the potential to halt proceedings entirely, as Yegor Sergeev, a senior research fellow at the Institute of International Studies at MGIMO University, emphasised in an interview with Izvestia.

As the economic situation worsens and restrictions expand to new areas, the list of countries that are unhappy with something and might seek exemptions for themselves could grow, according to the expert.
In the context of these developments, a dispute has emerged between Hungary and Slovakia, with Ukraine also becoming involved, resulting in the cessation of Russian oil pumping through the Druzhba pipeline. It is our understanding that Bratislava and Budapest have halted diesel fuel supplies to Kyiv and are threatening to cut off electricity supplies. The prime ministers of both countries have stated that Ukraine's actions are a means of pressuring Hungary to support Kyiv's EU bid.
It is possible that Bratislava and Budapest will use their veto to block the next round of anti-Russian sanctions, in an attempt to exert pressure on Brussels. Slovakia previously delayed approval of the 18th and 19th sanctions packages, having negotiated energy security guarantees. Hungary has employed a similar tactic on previous occasions, successfully securing the removal of Russian sports teams and the Paks II nuclear power plant project from blacklists.

Proposed inclusions in the 20th sanctions package by the EU
The primary objective of the latest sanctions is expected to be the imposition of restrictions on the provision of services for the transportation of Russian oil. Please note that the EU, in line with other G7 members, implements a so-called price ceiling. This means that companies from the G7 cannot provide services related to the trade of Russian oil (insurance, technical assistance and transportation) at levels above this ceiling. The current price ceiling is $44.1 per barrel. The EU is also attempting to target gas trade, planning to impose restrictions on the provision of services for tankers and icebreakers involved in transporting LNG from Russia.

In response, the Russian government has implemented a ban on the export of oil and petroleum products under contracts that include price ceilings. This ban will remain in effect until June 30, 2026. Russia has developed its own infrastructure for maritime oil transportation, meaning that Western restrictions have had no significant impact on export volumes. Moscow is also proactively redirecting crude oil to Asian countries, particularly India and China.
The second major section of the sanctions package relates to trade restrictions. According to media reports, the European Commission is proposing a ban on the import of Russian metals, chemicals, ammonia, and other critical raw materials worth over €570 million. According to Euroactiv, Finland and Sweden have called on the EC to halt the export of luxury goods to Russia, the maintenance of Russian oil tankers, and reduce fertilizer import quotas.

The EU is also maintaining its blacklists, with new individuals, legal entities, and banks expected to be added. It is possible that ports and companies in third countries could be targeted. According to the Financial Times, the European Commission is planning to prohibit all Russian cryptocurrency platforms and halt transactions associated with Russia.

However, the final set of measures in the 20th sanctions package has yet to be agreed upon, and some provisions may be excluded due to the positions of individual countries. It is possible that approval of the list will be delayed; for example, the 18th package of restrictions took over a month to negotiate last year. Please be advised that there was a significant delay with the 19th package. It is also important to consider the position of the US, which continues to refrain from imposing new restrictions on Russia amid ongoing negotiations on a Ukrainian settlement. Furthermore, the sanctions have not impacted Moscow's position, and the Russian economy continues to demonstrate stability.