Sanctions having serious impact on Russian economy - Dombrovskis

RIGA - Sanctions on Russia are affecting a very broad range of spheres and their impact on the Russian economy is serious, European Commission Executive Vice President Valdis Dombrovskis said in a discussion dedicated to the day for the commemoration of Ukraine's war victims.

The EU commissioner indicated that a number of Russian industries are already facing substantial problems. The European Union's (EU) sanctions on Russia involve extensive export control, preventing exports of high technologies and dual-use goods to Russia. Export control is being implemented not only by the EU but also the US. Sizable sanctions have also been imposed in transport.

The Russian financial sector is subject to sweeping sanctions, banning any transactions with the Russian central bank. The sixth sanctions package will include a disconnection of Russia's largest and systemically most important bank, Sberbank, from the SWIFT system. 

EU sanctions on Russia are also targeting a broad range of persons responsible for the war in Ukraine, including Vladimir Putin. Citing April data, Dombrovskis indicated that EUR 33 billion worth of assets have been frozen and transactions halted under the sanctions. 

In Dombrovskis' words, the EU has decided to move away from Russia's fossil energy sources and that the sixth sanctions package will include a ban on Russian oil imports. A diversification of gas supply sources is also under way, the commissioner said. 

Dombrovskis added that EU member states will not start using Russian natural resources once the war is over. The EU is working on the REPpowerEU plan for phasing out Russian fossil fuels.