Sanctions to hit Russia even harder over time - EC

According to Ukrinform, Bloomberg reported this with reference to the relevant report of the European Commission (EC).

The report notes that the sanctions have significantly worsened Russia's industrial and technological potential.

These effects will be further amplified over time, as the measures have a structured and long-term impact on Russia's budget, financial markets, foreign investment, and its industrial and technological base, the report said.

The document describes the effects of EU sanctions against Moscow. They have reduced approx. EUR 91 billion of imports from Russia and covered EUR 48 billion of alliance exports.

The EC estimates that in 2023, almost a third of Russia's federal budget will be spent on defense and internal security.

Meanwhile, exports from the EU and imports from Russia fell by over 50% compared to 2021. This triggered a particularly rapid contraction of technology-dependent manufacturing industries.

Exports of dual-use goods and advanced technologies were very rapid (by 78% in 2022 compared to 2019-2021).

Thanks to measures aimed at minimizing the impact on member states, the impact on the EU was contained but it was felt in some areas, mainly due to Russia's countermeasures and the war, which caused a rise in prices.

At the same time, Russia was able to obtain some sanctioned goods and other replacement technologies from third countries, including China, Kazakhstan, Türkiye, and the UAE, the report said.

As Ukrinform previously reported, Russia's oil and gas revenues are falling despite the circumvention of sanctions.