The Kremlin is confident that the policy of sanctions against Moscow is not achieving its goals.
Recurring pro-Kremlin disinformation narrative about sanctions.
Since March 2014, the EU has progressively imposed restrictive measures against Russia. The measures were adopted in response to the illegal annexation of Crimea and the deliberate destabilisation of Ukraine.
The annexation of Crimea and the consequent imposing of sanctions by the West sparked a wave of net capital outflows. The Central Bank of Russia recorded in 2014 that net capital outflows from companies and banks reached $151.1 billion compared to $61 billion the year before.
According to research into the effect of sanctions, the cumulative export loss to Russia during 2014-2018 is estimated at EUR 30 billion (about -0.2% of EU’s GDP in 2018).
According to a Bloomberg report, sanctions have knocked off 6% of Russia’s GDP since 2014. The sanctions played a major role, although other factors were present as well. And the GDP of the Russian Federation is now 10 per cent smaller than might have been expected before the crisis with Crimea. Sanctions also play an important role in the relatively small wage increase in Russia in comparison to other countries in 2019.
Most research supports the view that sanctions have worked as planned, noting the drag they have imposed on Russia’s general economic development since 2014. Russia’s own counter-sanctions have also had a clear negative effect on the welfare of the average Russian household.