Russia says economy ready for new sanctions

The Kremlin has asserted that Russia’s economy has successfully adapted to Western sanctions and is not apprehensive about the possibility of further punitive measures. These comments come in the context of Western sanctions introduced following Russia’s full-scale invasion of Ukraine on February 25, 2022.

The European Union, in response to the invasion, implemented a series of comprehensive sanctions designed to signal to Moscow that there would be substantial consequences for its actions. These sanctions have included 11 separate packages, and EU officials have indicated their intention to close any existing loopholes in the measures. There’s a possibility that these sanctions may remain in effect for several years.

Kremlin spokesperson Dmitry Peskov noted that Russia has experienced a prolonged period under a sanctions regime, spanning decades, and has managed to adapt to it. As a result, extended timeframes of five to ten years do not evoke fear in Russia. Moreover, Russia contends that the sanctions have actually stimulated its domestic economy and industrial production.

However, there are differing opinions regarding the effectiveness of these sanctions. Some observers argue that the sanctions have been circumvented and have not successfully deterred Russia in its actions against Ukraine. According to a report by the Norway-based risk consultancy Corisk, which analysed customs data from various countries, the circumvention of export sanctions on Russia amounted to approximately 8 billion euros ($8.5 billion) in 2022.

The core dispute centres on Western countries and Kyiv characterising Russia’s actions as an unprovoked war of aggression against Ukraine, while Moscow claims that Western powers are utilising Ukraine to weaken and undermine Russia’s own security. This ongoing geopolitical tension underscores the complex and multifaceted nature of the conflict and the strategies employed by both sides.