It is important for the European Union (EU) to maintain sanctions against Russia for as long as necessary, and they should not be reduced too soon, stresses Executive Vice-President of the European Commission Valdis Dombrovskis.
When asked if the imposed sanctions have given the expected effect, Dombrovskis reminded that, for example, the International Monetary Fund expects Russia to experience a recession this year and the next. He also said industrial production output in the country is down significantly.
«One thing we have to keep in mind – Russia is a very large country, and it is not like the effect from sanctions is an immediate one,» said Dombrovskis, adding that the effect from sanctions becomes clear after some time, and Russia’s economy in 2022 and 2023 will experience a recession, which is largely due to sanctions.
«Many Russian production sectors are experiencing serious problems now. Budget surplus has run out. This is why it is important to maintain this pressure – the effect from sanctions will gradually become more tangible. In parallel, of course, we have to work on sanction circumvention topics,» stressed the Vice-President.
He admits attempts to circumvent sanctions present a problem.
«It is clear that Russia and Belarus, both under sanctions, are searching for ways to circumvent and avoid sanctions in the EU and with help from third countries. It is worth reminding that many countries have not joined the sanctions imposed by the EU, USA, Britain and several other countries. This means it is constant work to fix everything and prevent circumvention attempts,» said Dombrovskis.
According to him, Iran is the most blatant example of Russia ignoring sanctions. China has taken an ambiguous position as well, and these are but some examples.
«We have to work with these third countries as well. For example, we’ve had discussions of these topics with representatives from Kazakhstan. They have confirmed the wish to cooperate with the EU and respect sanctions. But this requires constant monitoring and cooperation with these countries,» said Dombrovskis.
He added that Kazakhstan and other Central Asian countries have very close ties with China and Russia, but these two countries are not the simplest cooperation partners. Because of that, Kazakhstan and its neighbouring countries are looking for alternatives and are trying to diversify their economy.
«This is why there is interest from Central Asia, and the EU is interested in strengthening cooperation. For example, in the raw materials sector we have to look for alternatives both in relation to Russia and to avoid dependence on supplies from China. We have to diversify supplies wherever possible,» said Dombrovskis.
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