Bloomberg: EU sanctions against Russia affected only a few sectors of the union’s economy

Before agreeing on the ninth package of sanctions against Russia, the leadership of the European Union assessed the consequences of the restrictions already imposed on the Russian economy. This is reported Bloomberg with reference to a source and an unpublished document. It follows from this that the negative impact of the sanctions was limited to only a few sectors of the economy. EU countries spent €525.5 billion ($554 billion) to compensate for this damage from sanctions.

According to an assessment prepared by the executive body of the European Union, imports of wood and precious metals sank most of all from the sanctions against Russia. However, the European economy has suffered much more from the changed market trends and retaliatory restrictions from Russia. Due to retaliatory steps, for example, the import of rare gases, such as neon and xenon, which are necessary for the production of chips, has dipped.

The document notes that imports from Russia to EU countries fell to about 9% of total trade from 40%-45% before the outbreak of hostilities. At the same time, the main imports were replaced by supplies from Turkey, Brazil, South Korea and India. The blow to a critically important raw material for the EU economy has so far been insignificant. Thus, the assessment showed that imports of aluminium, nickel and titanium, on the contrary, increased, while supplies of palladium and copper decreased slightly.

It follows from the analysis that one of the most vulnerable places has become the dependence of the European Union on Russian railways and corridors for freight traffic from China. The analysis notes that this problem will further increase transport costs.

7 December European Commission disclosed content of the ninth package of sanctions against Russia. It will include 200 individuals and legal entities. Export control will be expanded, a ban on investments in the mining industry in Russia will be introduced. Restrictions should affect three more Russian banks. Broadcasting of four Russian channels will be blocked.

For more information about what happens after the entry of Russian troops into Ukraine, read online broadcasts “b”.

Anastasia Larina