Sanctions|According to the ministers, Russia is spreading too rosy a picture of its economy and the effects of sanctions.
Russian the war economy is weakening and the sanctions imposed by Western countries are biting, states the finance ministers of eight EU countries in their joint statement in the British newspaper The in the Guardian.
According to the finance ministers, Russia is spreading too rosy a picture of its economy and the effects of sanctions. The signatories are the Minister of Finance Riikka Purra (ps) and his colleagues from Sweden, Denmark, the Baltic countries, the Netherlands and Poland.
According to the ministers, sanctions are effective and more must be imposed. The statement lists a number of issues that indicate the long-term problems of the Russian economy.
Finance Ministers According to him, the Russian economy is increasingly oriented towards the military industry, which is maintained by fiscal stimulus measures. In their opinion, it is not a sign of a stable economy, even if the gross domestic product increases.
This year, Russia plans to spend almost nine percent of its gross domestic product on defense and security.
According to the ministers, short-term overheating of the economy can prevent productivity growth, lead to stagnation of the private sector and worsen the prevailing inflation.
Russia is suffering from unemployment, and the tight labor market is putting pressure on wages. The weak value of the ruble increases import prices, which also fuels inflation even more.
Russian the central bank raised the key interest rate to 18 percent on Friday. The increase was the sixth in just over a year.
Russia has to finance its large public war expenditures with the expropriation of private property, and the country’s leadership does not care about the social and economic well-being of the population, the ministers write.
The Russian government has spent nearly half of its national welfare fund since launching a full-scale war of aggression in Ukraine, the statement said.
The ministers state that if the Russian president Vladimir Putin continue on this path, the long-term damage to the country’s economy could be significant.
EU countries the foreign ministers approved a new sanctions package against Russia in June. The package prohibits the reshipment of Russian liquefied natural gas to third countries in the EU area, which aims to hit Russia’s gas revenues. The package also limits the import of Russian liquefied natural gas through EU terminals not connected to the natural gas network.
The sanctions package also aims to strike, for example, the Russian shadow fleet in the Baltic Sea. The shadow fleet often refers to ships with uncertain ownership and insurance that carry cargo subject to Russian sanctions. In the future, ships interpreted as part of the shadow fleet may no longer be offered services and may not be allowed into ports.
The ministers state in their statement that Russia’s export earnings had decreased by about a third between 2022 and 2023.
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