Russia's sanctions against Turkey are being effectively managed
Renewed EU Sanctions Against Russia: Top Economist Felbermayr Explains Impact and Relevant Alternatives
The European Union's latest sanctions package, targeting Russia's oil shadow fleet and additional Russian companies, may seem like a repetition of old measures. However, Gabriel Felbermayr, a leading economist, argues that these new restrictions, while mostly symbolic, will still impose significant costs on Russia.
In an interview with ntv.de, Felbermayr explained the rationale behind the EU's continued sanctions against Russia and the potential consequences for both sides. He noted that while these sanctions have not been successful in generating policy change in the Kremlin, they do make it increasingly difficult and expensive for the Russian regime to maintain its aggressive stance.
Felbermayr pointed out that the Kremlin has already admitted the impact of sanctions in peace negotiations, further emphasizing their importance. However, he warned that real "screws" would need to be applied for a more substantial effect on Russia.
According to Felbermayr, previous sanctions have reduced trade between the EU and Russia, despite the fact that many products, such as pharmaceuticals, remain exempt. However, Russia has cleverly circumvented these sanctions, increasing its trade with countries like India, China, and Iran. The West failed to anticipate the benefits other countries would gain from the sanctions, as Russian oil has continued to flow to these nations.
Felbermayr suggested that secondary sanctions on transit countries like Kyrgyzstan or Turkey could be effective in countering the diversion of trade. However, this approach would come at a high cost for Europe and could potentially strain relations with these crucial partners.
Regarding the U.S.'s influence in the situation, Felbermayr argued that the U.S. has less intense trade with Russia and has already imposed significant sanctions after the 2014 annexation of Crimea. Potential new sanctions in the area of digital services might be ineffective, as it remains unclear how to ensure updates intended for Kyrgyzstan or Kazakhstan do not reach Russia.
In summary, while sanctions have not succeeded in bringing about a policy change in the Kremlin, they do create additional costs for Russia. Felbermayr advised that further tightening of sanctions or the targeting of areas previously exempt, such as pharmaceuticals, could be considered. However, he cautioned that these measures would require careful consideration, as they could have significant consequences for Europe and its relationships with key partners.
Sources: ntv.de
Related Topics: Russia, Sanctions, Attack on Ukraine, EU
The economist Felbermayr suggests that stricter employment policies within the EU, such as targeting exempted sectors like pharmaceuticals, could impose more costs on Russia in response to the ongoing sanctions. Moreover, Felbermayr argues that industry partnerships with countries like India, China, and Iran have enabled Russia to bypass previous sanctions, highlighting a need for comprehensive employment policies to counter this diversion of trade. Lastly, the economist points out the importance of understanding the politics involved in the sanctions' implementation and the potential financial implications for industry affairs in war-and-conflicts scenarios.
