The massive punitive measures against Russia following the brutal attack on the neighboring country are still not doing as much damage to the Kremlin as hoped.
The Russian economy grew stronger than expected this summer. Gross domestic product (GDP) increased by 5.5 percent in the third quarter compared to the previous year, the national statistics agency announced on Wednesday. This is the strongest increase since the fourth quarter of 2021. Economists had expected an average growth of 5.1 percent. In the second quarter, the Russian economy grew by 4.9 percent.
Growth is mainly supported by high government expenditure. Experts point to the expenditure on the war against Ukraine. This supports industrial production. It rose 10.2 percent year-on-year. The effect of Western sanctions has been neutralized. Moreover, Russian companies seem to be increasingly able to circumvent these.
The EU is working on new measures
Meanwhile, the EU is preparing a new package of sanctions. As the EU Foreign Service announced on Wednesday, a proposal for a twelfth sanctions package has been sent to the 27 member states. It is now being examined by government representatives and should ideally be implemented by the end of the year.
According to information from Brussels, there are plans to impose export and import bans on additional goods and to tighten the price ceiling on Russian oil exports to third countries, which has had little effect recently. According to information from the German Press Agency, it also includes a proposal to restrict the trade in diamonds from Russia. Russia is considered the world’s largest producer of rough diamonds. In 2021, state diamond miner Alrosa had a turnover of 332 billion rubles (about 3.38 billion euros).
Extensive import ban
There has long been a sweeping ban on the import of crude oil, coal, steel, gold and luxury goods, as well as punitive measures against banks and financial institutions. The list of people sanctioned over the conflict in Ukraine now includes around 1,800 entries.
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.
