12:50 - 16.02.2023
February 16, Fineko/abc.az. The 10th package of sanctions is on the way. Many say that sanctions are ineffective, have not weakened the Russian economy and, on the contrary, negatively affect us. It is true that the Russian economy has not collapsed, and GDP growth rate is not as expected.
ABC.AZ reports that this was stated by EU High Representative for Foreign Policy and Security Josep Borrel in his speech at the plenary session of the European Parliament.
He added that last year Russia had unusually high revenues - both from natural gas and oil.
"But things are changing. If you look at the trade balance, you can see that they had a large surplus in 2022, but in January 2023 it was below average. This is the lowest level since 2007. Sanctions are a slow-spreading poison, it takes time for them to take effect, but they work. And they do it irreversibly. 45% of Russia's technological dependence on Europe. Its automobile and aviation plants have lost 80% of their capacity. Yes, the ruble is artificially strong, but the Russian economy will pay dearly for this war. They have lost their main energy consumer, the Europeans.
In addition, it will not be easy for them to find an alternative buyer, it is almost impossible, because China is very far away. They sell oil at $40 per barrel, that is, twice as cheap as Brent. And India and China are buying it at a discount, and this is also due to the effect of our "price cap". This is great political success, because we managed to reduce Russia's revenues and change the world oil market. Yes, our sanctions are in effect. They act slowly but surely. They undermine the technological, trade and energy foundations of the Russian economy. Putin has already lost the battle for energy, because he is losing the war morally and politically, and even so far militarily, despite the fact that Ukraine has not yet won," Borrel said.
