NEWS

EU says additional sanctions will gradually erode Russia’s industrial basis

EU says additional sanctions will gradually erode Russia’s industrial basis

An upcoming second EU sanctions package will hit Russia’s economy severely, increasing capital outflow, raising inflation and gradually eroding its industrial basis, EU Commission chief Ursula von der Leyen said on Thursday.

“These sanctions will suppress Russia’s economic growth, increase the borrowing costs, raise inflation, intensify capital outflow and gradually erode its industrial basis,” she told reporters in Brussels, adding the EU was also aiming at limiting Russia’s access to crucial technology.

“Our measures will weaken Russia’s technological position in key areas from which the elite makes most of their money – this ranges from high-tech components to cutting-edge software,” von der Leyen said. [Reuters]