The European Union (EU) has claimed that Russia has suffered an economic blow exceeding €1 trillion (approximately 1,641 trillion won) due to extensive sanctions. The EU is set to impose significant additional sanctions this fall, intensifying pressure on Russia.
On August 17, Kaya Kallas, the EU's High Representative for Foreign Affairs and Security Policy, stated in an interview with the German daily Die Welt, "Russia has paid a heavy price due to sanctions. So far, the cost to Russia's war machine has exceeded €1 trillion." She added, "This fall, I will propose the most extensive list of sanctions since the outbreak of the war. If passed, the number of individuals, companies, and organizations sanctioned in Russia will increase by one-third."
Since the outbreak of the war in Ukraine in February 2022, the European Commission has adopted a total of 21 sanction packages, targeting approximately 3,000 individuals and entities. Currently, the assets of the Russian Central Bank frozen within the EU amount to about €210 billion (approximately 345 trillion won). Due to trade sanctions, exports to Russia have plummeted by 54% (around €48 billion), while imports have decreased by 58% (around €91.2 billion), with more than two-thirds of the sovereign wealth fund's liquid assets evaporating.
Kallas also commented on the recent U.S. Senate approval of a sanctions bill that prohibits the export of U.S. energy and products to Russia and imposes tariffs of up to 500% on Russian imports, stating, "This gives hope that Europe and the U.S. can work more closely together on sanctions issues."
Initially benefiting from a wartime economy, Russia now faces severe economic challenges due to escalating war costs and concentrated attacks on its energy facilities by Ukraine. There are signs of rising internal crises.
According to foreign reports, Andrei Klepach, chief economist at the Russian Foreign Economic Bank (VEB), was abruptly dismissed after stating that Russia could not win the war of attrition against Ukraine. He had served as chief economist at the state bank for over a decade and reportedly criticized the Western sanctions and high interest rates as obstacles to economic growth, indicating that Russia is facing a social crisis. The Moscow Times reported on August 16 that the bank's management dismissed him after receiving a call from "higher-ups," suggesting directives from the Russian presidential office.
On August 17, Kaya Kallas, the EU's High Representative for Foreign Affairs and Security Policy, stated in an interview with the German daily Die Welt, "Russia has paid a heavy price due to sanctions. So far, the cost to Russia's war machine has exceeded €1 trillion." She added, "This fall, I will propose the most extensive list of sanctions since the outbreak of the war. If passed, the number of individuals, companies, and organizations sanctioned in Russia will increase by one-third."
Since the outbreak of the war in Ukraine in February 2022, the European Commission has adopted a total of 21 sanction packages, targeting approximately 3,000 individuals and entities. Currently, the assets of the Russian Central Bank frozen within the EU amount to about €210 billion (approximately 345 trillion won). Due to trade sanctions, exports to Russia have plummeted by 54% (around €48 billion), while imports have decreased by 58% (around €91.2 billion), with more than two-thirds of the sovereign wealth fund's liquid assets evaporating.
Kallas also commented on the recent U.S. Senate approval of a sanctions bill that prohibits the export of U.S. energy and products to Russia and imposes tariffs of up to 500% on Russian imports, stating, "This gives hope that Europe and the U.S. can work more closely together on sanctions issues."
Initially benefiting from a wartime economy, Russia now faces severe economic challenges due to escalating war costs and concentrated attacks on its energy facilities by Ukraine. There are signs of rising internal crises.
According to foreign reports, Andrei Klepach, chief economist at the Russian Foreign Economic Bank (VEB), was abruptly dismissed after stating that Russia could not win the war of attrition against Ukraine. He had served as chief economist at the state bank for over a decade and reportedly criticized the Western sanctions and high interest rates as obstacles to economic growth, indicating that Russia is facing a social crisis. The Moscow Times reported on August 16 that the bank's management dismissed him after receiving a call from "higher-ups," suggesting directives from the Russian presidential office.
* This article has been translated by AI.
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