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Three years after the imposition of EU sanctions, Russia’s revenues from trade with the EU fell by 74%, oil imports decreased by 90%, and gas from 45% to 13%. “Sanctions have cost the Russian economy 450 billion dollars,” declared in Brussels David O’Sullivan, the EU’s special representative for sanctions.
On Wednesday, O’Sullivan participated in a hearing on the effectiveness and enforcement of EU sanctions against Russia, organized by MEP from PO Andrzej Halicki and Latvian MEP from the EPP Sandra Kalniete at the European Parliament in Brussels.
The Irish politician recalled that since the Russian invasion of Ukraine, the European Union has imposed 16 sanction packages on Russia. “It is necessary to understand the significance of these sanctions and that it was an unprecedented move, especially since we had to achieve unanimity in imposing the sanctions,” said O’Sullivan.
As he recalled, as recently as 2021, Russia was the EU’s fifth trading partner, representing 5.8% of the union’s goods trade worth almost 260 billion euros annually. “Three years later, as a result of the sanctions, income from trade with Russia fell by 74%, showing the scale of the effectiveness of the sanctions,” noted the expert. Also, oil imports from Russia fell by 90%, and gas decreased from 45% to just 13%.
“Of course, someone may say that trade and imports continue, but what we have managed to achieve in just three years is something extraordinary,” assessed the politician.
He noted that the aim of the sanctions was primarily to deprive Russia of the technology to produce weapons and reduce the revenues of the Russian economy used to support the war. “And here the sanctions, although not perfect, are having an effect. We estimate that the Russian economy has lost 450 billion dollars. We hear the false narrative that the Russian economy is doing well, that it recorded 3-4% growth. But let us remember that at the same time inflation is raging in Russia. Officially, it is said to be 10%, unofficially even 20-25%,” said the expert. As he recalled, today Russia allocates almost 30% of public money, or 6-8% of its GDP, to defense. “Putin has cannibalized the civilian economy to conduct a war economy. This can be done for some time, but not continuously,” said O’Sullivan.
As he assessed, the EU cannot at this moment give up on the sanctions, especially since they can be a tool of pressure on Russia during peace talks. However, the fight against their circumvention should be strengthened. “We have turned here for help to the European industry, and it takes compliance with the sanctions very seriously. However, let us remember that these sanctions were introduced autonomously by the EU states and its partners, and not by the entire UN community, which means that not all countries like them.
Also, the organizers of the event, Halicki and Kalniete, agreed that the EU must not only exert stronger pressure on Russia but also impose additional, even more severe sanctions on it and ensure their enforcement and implementation. “Sometimes I hear comments that since we imposed as many as 16 packages, it means that the sanctions are not working. That is not true,” said Halicki, adding that the EU succeeded in weakening the Russian economy, limiting Russia’s access to key military technologies, and freezing Russian assets, although – as he noted – the EU still has not decided how these funds will be used. “Two things are certain: they will certainly not return to Putin and will certainly be at least partially used to rebuild Ukraine,” added O’Sullivan.
On February 24 on the third anniversary of Russia’s invasion of Ukraine, member states adopted the 16th package of sanctions on Russia. Work is underway on the 17th package. (05.03.2025)