The Impact of Anti-Russian Sanctions on EU Economy

Abstract

Anti-Russian sanctions and overall deterioration of conditions for trade with Russia have a negative impact not only on Russia, but also on Europe and the global economy. The negative effects of the current geopolitical landscape have proven painful for economic growth to larger extent of the European countries dependent on Russian energy supplies and which have significant business interests in Russian. Specific manifestations of the crisis include a severe economic slowdown that might drive European economies into recession, significant energy sector challenges, decline in living standards and higher inequality due to record inflation caused by soaring pricing for energy, food, and many other goods and services, persistent large budget deficits and worsening terms of external trade settlements. Among the most affected by the sanctions policy and confrontation with Russia are almost all Central and Eastern European countries, Germany and Italy.