Months ago, the governor of his central bank warned of “strong” Western sanctions against Russia. Now the head of state Vladimir Putin has publicly admitted for the first time that the punitive measures imposed because of the Russian offensive in Ukraine could have “negative consequences” for his country.
“The sanctions imposed on the Russian economy could have a very negative impact in the medium term,” Putin warned during a televised government meeting on Wednesday. The Kremlin chief also admitted that unemployment in Russia remained “at an all-time low”. However, inflation is expected to fall back to “below four percent” by the end of March. That had risen sharply to almost 20 percent last spring.
‘Government must act quickly’
Putin added that “returning to a growth path should not make us feel relaxed”. “We must support and strengthen the positive developments in our economy, increase its efficiency, ensure technological, human and financial sovereignty,” the president said, calling on the government to “act quickly and without unnecessary bureaucracy and delays.”
He called on the government and industry to ensure a quick start of new projects in the manufacturing sector – “especially in the manufacture of high-tech products”. However, the Russians lack important raw materials. On the other hand, Energy Minister Nikolai Zhurginov claimed on Tuesday that all crude oil exports affected by the sanctions have been diverted to “friendly” countries. “Today I can say that we have managed to completely turn around the entire export volume affected by the embargo. There was no drop in turnover,’ said the minister. According to the information, new buyers have been found in Asia, Africa, Latin America and the Middle East.
3,000 sanctions violations since the start of the war
But not only are alternative routes not covered by the sanctions, clear violations abound. The Estonian tax and customs authority announced on Wednesday that about 3,000 cases had been identified since the start of the war in Ukraine in February of the previous year. The violations were committed by individuals as well as companies from Estonia and other EU countries, the head of customs, Külli Kurvits, told Estonian Radio.
According to Kurvits, private individuals mainly violate the export ban on cash and luxury goods to Russia, while companies often want to circumvent the export ban on machines and mechanical devices. All in all, there is an increase in evasion attempts: some 1,500 violations were detected in the first three months of this year alone – the same number as in the period from February to the end of 2022.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
