Sanctions imposed by Western countries and Ukraine against Russia already have potent effect and affect Russian economy – Minister of Economy
The economic sanctions that were imposed by Western countries and Ukraine against the Russian Federation are already having a powerful effect and are affecting the Russian economy, Deputy Prime Minister and Minister of Economy of Ukraine Yulia Svyrydenko has said.
"According to the results of the year, a budget deficit of 3.35 trillion rubles or about 2.3% of GDP was recorded. Russia was forced to increase the issue of domestic borrowings, moreover, at floating rates, which will increase the cost of servicing the debt," the press service of the Ministry of Economy quoted Svyrydenko.
The minister said that the Russian National Wealth Fund, which funds have been used to cover the budget deficit since October, has already narrowed by tens of billions of U.S. dollars: if at the end of 2021 the fund had $182.59 billion, then today it is about $148 billion.
"At the same time, the trends are only getting worse. This year Russia's budget deficit is expected to be at least 6%. In the event of a tougher position of the sanctions coalition regarding the price cap for oil and oil products, the situation will be even worse," Svyrydenko said.
She also said that one of the main tasks of the Interdepartmental Working Group on the Implementation of the Sanctions Policy in 2023 is to further strengthen the effectiveness of sanctions.
According to the minister, it concerns the development of targeted sanctions against persons whose property can be confiscated in the manner prescribed by law in Ukraine because "the assets of Ukraine's enemies must be recovered in favor of the state and work for it."
Commenting on the recent decision of the National Security and Defense Council, as well as the decree of the President of Ukraine enacting it, on the imposition of sanctions against Russian and Belarusian companies involved in the transportation of goods, leasing vehicles and chemical production, Svyrydenko said that now the assets of sanctioned persons, in particular, railway cars, will work for the benefit of the economy and defense of Ukraine.