Economist confident: "Russia is turning back into a developing country"
Created: 05/12/2022, 08:20
By: Patricia Huber
As a result of the Ukraine war, the EU has already decided on several sanctions packages against Russia.
According to one expert, these have serious consequences for the Russian economy.
Moscow – Russian citizens have been feeling the effects of Western sanctions imposed on their country for several weeks.
Because of the Ukraine war, numerous companies have withdrawn from Russia.
Stores like H&M, McDonald's and Zara have been closed for weeks.
Ukraine-News: Oil embargo would have "serious consequences".
Now EU Commission President Ursula von der Leyen has also proposed an import ban on Russian oil.
A gas embargo is also being discussed, but here the dependency on Russia is significantly greater and a boycott is therefore less likely.
If the 27 member states agree to the oil embargo, it will "have serious consequences for the Russian economy ,
" Theocharis Grigoriadis told
Bild.de.
He is Professor of Economics in Eastern Europe at the Institute for Eastern European Studies at Freie Universität.
He is sure that the situation for Russia will become dire in the long run.
"Companies will have to lay people off," he makes clear.
Ukraine-News: Sanctions will only affect the EU in the short term - but Russia in the long term
Grigoriadis does not predict a rosy future for President Vladimir Putin's country: "All the factors for a recession are there.
Russia is turning back into a developing country.” The professor knows that the sanctions will also have negative consequences for the EU in the short term, but in the long term they would only affect Russia and thus Putin.
Our free business newsletter provides you with all relevant business news on a regular basis. Click here for registration.
Putin repeatedly threatens sanctions against the West.
But according to the expert, he doesn't really have many options.
The natural gas deliveries are his greatest leverage.
Grigoriadis told the newspaper: "Apart from stopping gas deliveries, Putin has no great leeway." He further explains: "Putin's sanctions are more of a symbolic value."