Sanctions having ‘significant impact’ on Russian economy, says EU special envoy

EU sanctions envoy David O'Sullivan stated that Western sanctions are having a "significant impact" on the Russian economy four years after the full-scale invasion of Ukraine. While acknowledging circumvention, O'Sullivan believes the Russian economy is under considerable strain, with plummeting oil revenues, high inflation, and high interest rates. He suggests the focus on war production is distorting the economy and may become unsustainable around 2026. The EU has imposed 19 rounds of sanctions targeting over 2,700 individuals and entities, restricting trade in various sectors. O'Sullivan is working to prevent the re-export of European goods, particularly those with military applications, to Russia through countries in central Asia, the Caucusus, Turkey, and Serbia.

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