Infographic - Impact of sanctions on the Russian economy

The European Union has imposed ten packages of sanctions against Russia and Belarus since Russia's invasion of Ukraine in February 2022. These sanctions aim to impair Russia's war financing and primarily target the nation's political, military, and economic elites. Notably, the sanctions deliberately avoid impacting Russian society and exclude sectors like food, agriculture, health, and pharmaceuticals.

Economic data indicates these sanctions are affecting Russia's economy. In 2022, Russia's GDP fell by 2.1%, as reported by the World Bank, IMF, and OECD. Predictions for 2023 vary, with the OECD foreseeing a 2.5% decline in GDP, while the World Bank projects a smaller 0.2% decrease, and the IMF anticipates slight growth.

Trade has also been impacted, with a significant reduction in Russia's goods and services trade in 2022. For 2023, imports are expected to increase slightly, but exports might continue to decline or stabilize at low levels.

Furthermore, sanctions have cut into Russia's fossil fuel revenues. In the first half of 2022, Russia profited from high global fossil fuel prices, but sanctions introduced in December 2022 have since reduced its oil income significantly.

Financially, the EU and its allies have frozen approximately €300 billion of Russian Central Bank reserves and sanctioned about 70% of the assets of the Russian banking system. Additionally, around €20 billion worth of assets from over 1,500 sanctioned individuals and entities have been frozen.