Brussels, 6 December 2022
See question(s) : E-003198/2022
EN
E-003198/2022
Answer given by Ms McGuinness
on behalf of the European Commission
(6.12.2022)
The EU closely coordinates its sanctions with its international partners, to achieve maximum
impact. EU sanctions have already imposed an immediate and high cost on Russia, despite the short timeframe of their implementation and despite Russian oil and gas revenues1. According to the latest Commission forecast, Russia will experience a severe recession in 2022, with its economy contracting by 5.1%, followed by another drop of 3.2% in 2023. Also, Russia’s oil and gas revenues show signs of decreasing. While export volumes have already begun to fall fast2, stagnating and even falling prices3 have started to translate into declining overall export values.
E-003198/2022
Answer given by Ms McGuinness
on behalf of the European Commission
(6.12.2022)
The EU closely coordinates its sanctions with its international partners, to achieve maximum
impact. EU sanctions have already imposed an immediate and high cost on Russia, despite the short timeframe of their implementation and despite Russian oil and gas revenues1. According to the latest Commission forecast, Russia will experience a severe recession in 2022, with its economy contracting by 5.1%, followed by another drop of 3.2% in 2023. Also, Russia’s oil and gas revenues show signs of decreasing. While export volumes have already begun to fall fast2, stagnating and even falling prices3 have started to translate into declining overall export values.
The restrictive measures have caused severe financial strain, degraded Russia’s industrial and technological capacity, and focused pressure on Russian elites and oligarchs. Russia’s banking sector has been strongly impacted, and large parts of the reserves of its central bank have been immobilised. EU exports to and imports from Russia of about EUR 30 billion and EUR 90 billion in 2021, respectively, are covered by the Union’s trade sanctions. Member States have frozen high volumes of assets belonging to listed persons and entities. These negative effects will further accumulate over time, as the measures deploy their structural effects on Russia and because some adopted measures are still subject to phasing-in periods.
Consequently, Russia has entered a recession, which is predicted to last for an extended period of time. EU sanctions have been designed and implemented to impose a heavy price on Russia, whilst minimising adverse effects on the EU and third countries. The EU trade restrictions exclude products primarily intended for private consumption – other than luxury goods – and those related to health, pharmaceuticals, food and agriculture.
1 Now addressed notably through the oil price cap within the 8th sanctions’ package
(https://ec.europa.eu/commission/presscorner/detail/en/IP_22_5989)
2 For example, export of gas volumes of 2022 fell in the 3rd quarter of this year by 61% over the 3rd quarter of 2021, and those to the EU even faster.
3 Latest wholesale prices for Brent oil (Russian oil is sold at a significant discount) show a drop of 15% over the year high, though still around 24% over the corresponding value of last year, and for gas a drop of around 66% over this year’s high, but still around 2.5 times higher than a year ago
(https://ec.europa.eu/commission/presscorner/detail/en/IP_22_5989)
2 For example, export of gas volumes of 2022 fell in the 3rd quarter of this year by 61% over the 3rd quarter of 2021, and those to the EU even faster.
3 Latest wholesale prices for Brent oil (Russian oil is sold at a significant discount) show a drop of 15% over the year high, though still around 24% over the corresponding value of last year, and for gas a drop of around 66% over this year’s high, but still around 2.5 times higher than a year ago
Source: Answer to a written question – Assessment of economic sanctions against Russia – E-003198/2022(ASW)