Mentioning that the sanctions imposed by the EU on Russia will have severe consequences, EU Commission Senior Vice President Valdis Dombrovskis said, “Russia feels the pain of these sanctions.” said.
Recalling that some Russian banks were excluded from SWIFT and that strict measures were implemented against the Russian financial sector, Dombrovskis said, “The ruble has lost 25 percent of its value just this week. Investors are losing confidence in the Russian economy and financial sector.” he said.
Pointing out that these are the price to be paid for the Kremlin’s aggression and gross violation of international law, Dombrovskis explained that their aim is to weaken the Russian economy, deprive it of critical technology and markets, and ensure that it cannot finance the war.
“European sanctions will naturally have consequences and a cost for the EU economy as well,” Dombrovskis said. used the phrase.
Stating that it is difficult at this stage to accurately calculate the cost of the sanctions in question, Dombrovskis said, “As the sanctions begin to take effect, we may see scenarios such as higher inflation, more pressure on energy prices and a negative impact on financial markets.” said.
Dombrovskis pointed out that the growth will continue at a slower pace in this process, emphasizing that all these are prices worth paying.
Reminding that the EU has suspended the Union financial rules, which limit the public expenditures of the member states, until 2023 due to the Kovid-19 outbreak, Dombrovskis said, “However, we will reevaluate this in the spring, considering the upcoming uncertainty.” made his comment.
According to EU rules, budget deficits of member states should not exceed 3 percent of their GDP and public debt should not exceed 60 percent of their GDP under normal conditions.
Due to the Russia-Ukraine war, these financial rules are expected to be suspended for a longer period of time. (AA)