Sanctions have impact on Russia's economy – Lithuanian PM

  • 2023-02-07
  • BNS/TBT Staff

VILNIUS – Lithuanian Prime Minister Ingrida Simonyte says one needs to have patience regarding sanctions for Russia, adding that they do have an impact on Russia's economy, although not as quickly as predicted.

Although Russia's GDP does not look "as bad as it really is", part of it is made up of the war economy, she said.

"That Russia's GDP has fallen less than forecasters expected. I'll say very simply as an economist: the military industry's production results are included into the GDP, and that includes uniforms that will rot on Ukrainian fields, as well as the funeral services, and this way that GDP can. … look not as bad as it really is," the prime minister told a press conference on Tuesday after her meeting with visiting Swedish Prime Minister Ulf Kristersson.

The isolation of Russia and its accomplices, as well as the sanctions, need to be strengthened, the Lithuanian premier said.

"We see some signs there are attempts to circumvent the existing sanctions in some situations, attempts to deny the impact of those sanctions on the Russian economy, and I can mention once again that we must, first of all be, patient because a lot of the figures and assessments we see on the surface do not necessarily tell the story that Russian propaganda is trying to tell us," Simonyte said.

In her words, due to its primitiveness and focus on raw materials, "the pathways of impact on the Russian economy are not as fast as some would like them to be".

Diplomats are currently discussing a 10th package of sanctions for Russia. The European Union' has so far imposed sanctions on Russian individuals, certain companies, banks, channels, technology and other items. Nine sanctions packages have so far been adopted since the start of the Russian invasion of Ukraine.