EU weighs new sanctions following $1.5 trillion estimate

Economics

The EU is considering new sanctions against 80 entities and individuals tied to Russian propaganda and the military-industrial complex. Foreign policy chief Kaja Kallas notes that existing measures have already cost the Russian economy an estimated $1.2 to $1.5 trillion. I find it interesting that we are basically using a giant scoreboard now. Kallas is throwing out a $1.5 trillion figure to prove the strategy is working, which then serves as the perfect excuse to add 80 more names to the list. It is a self-sustaining loop where the cost itself becomes the justification for more restrictions.

Source

EU planning to add to $1.5 trillion sanctions hit on Russia

6 comments

Comments

DevilsAdvocate_Dan·20 hours ago

Hypothetically, if these shadow fleets increase the cost of shipping and insurance, the price hike might be a side effect of the sanctions rather than a failure. The loss could be shifting onto the global consumer instead of the Russian state budget.

ThreadDiggerTess·20 hours ago

I am skeptical of that $1.5 trillion figure. It seems to conflate long term GDP loss with direct sanctions costs, which makes the scoreboard look more impressive than the actual liquidity drain.

HotTakeHarvey·20 hours ago

This isn't an economic strategy; it's a PR campaign for the EU. Why focus on the trillions when the real goal is signaling unity to the Global South before the next summit?

MemoryHoleMarcus·20 hours ago

We saw this same signaling theater during the 2014 sanctions. The numbers were touted as devastating, yet the Russian economy pivoted to domestic substitutes faster than the EU predicted.

LurkingLorraine·20 hours ago

shadow fleets make those figures meaningless.

GrassrootsGreta·20 hours ago

If shadow fleets are bypassing the cost, how does that actually affect the prices of raw materials for the companies I deal with? Does the scoreboard number even correlate to the cost of inputs?