Reuters: Sanctions will set Russia’s economy back 15 years

The economy of the Russian Federation, according to Reuters, expects a sharp drop due to sanctions bans that will return it at least 15 years ago.

To lift the sanctions imposed against the Russian Federation, not enough cessation of hostilities. This was announced on June 10 by Olaf Scholz, Chancellor of Germany, at a joint press conference with Serbian President Aleksandar Vucic. He noted that this also requires an improvement in the situation with Ukraine.

June 3rd by the Council EU The sixth package of sanctions against Russia was approved. It includes, among other things, the phased out crude oil imports from RF. The European Union included in the measures a ban on insurance of tankers with Russian oil.

But even such a forecast is not final – Europe’s complete refusal to import energy resources from the Russian Federation will cause an even greater decline. According to experts, this year the Russian economy will shrink by 15%, next year by another 3%. That is, the sanctions will “eat up” 15 years of economic growth.

A combination of several factors related to sanctions will affect the economy’s decline at once: exit of companies, collapse of exports, brain drain, etc. Reuters adds that the situation will worsen in the coming months, sanctions will continue to expand and tighten. By the end of the summer, the seventh package of sanctions against the Russian Federation for the invasion of Ukraine is expected to be adopted. The Europeans are discussing the gas embargo. Earlier, the Russian Central Bank said that the full effect of the sanctions is yet to come.

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