The European Union (EU) member states have suffered significant economic losses amounting to around $1.5 trillion as a result of the sweeping sanctions imposed on Russia, according to the Russian Deputy Foreign Minister Aleksandr Grushko. Speaking at the Eurasian Economic Forum, Grushko expressed his doubts regarding any reversal of the EU’s current policies towards Moscow in the near future.
Grushko emphasized that the imposition of sanctions and the decision to curtail cooperation with Russia have had a profound impact on the EU’s economy. He estimated that the losses incurred by the bloc due to these measures could reach $1.5 trillion. He noted that the mutual trade between Russia and EU member states amounted to $417 billion in 2013, but could have reached $700 billion this year if it were not for the Ukraine-related sanctions.
Furthermore, Grushko pointed out that the bilateral trade volume has already decreased to $200 billion in 2022 and is expected to decline further to less than $100 billion by the end of 2023. He even predicted that it would eventually reach almost zero.
The impact of the sanctions on Germany’s industrial sector was highlighted by Grushko. He stated that German industries are now compelled to purchase natural gas at prices three times higher than those in the US. As a result, production lines are gradually shifting to North America despite concerns raised by German businesses.
It is worth noting that the EU has implemented 11 sanctions packages against Russia to date, primarily in response to its military intervention in Ukraine. These measures have resulted in tens of thousands of restrictions. However, officials from both the EU and the US have acknowledged that the negative consequences of the sanctions on Russia have not been as significant as initially anticipated.
The consequences of these sanctions go beyond the economic sphere. They have also strained diplomatic relations between Russia and the EU, resulting in increased tensions and the deterioration of mutual trust. The ongoing implementation of sanctions has made it difficult for both sides to engage in constructive dialogue and find common ground on various international issues.
In conclusion, the EU member states have experienced substantial economic losses as a result of the sanctions imposed on Russia. The bilateral trade between Russia and the EU has significantly declined, and the prospect of recovery is uncertain. Additionally, the sanctions have had adverse effects on the industrial sector of countries like Germany. As the EU continues to enforce sanctions, the already strained relations between Russia and the EU are unlikely to improve in the near future.