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- KSE Institute calls for new sanctions against Russia on the anniversary of the full-scale invasion
On the anniversary of the full-scale invasion, KSE Institute presents a comprehensive “Sanctions Priorities 2023” package to put additional pressure on the Russian Federation. The experts suggest three pillars for strengthening sanctions: constraining, isolating, and making Russia pay for its crimes and actions in Ukraine.
Sanctions of the international community against the Kremlin have already had a major impact on Russia, nearly triggering a financial crisis last spring and forcing a contraction in the Russian economy despite high energy prices. According to KSE Institute experts, the imposed sanctions are expected to reduce oil and gas export revenues from $350 billion to $170 billion, widening the federal budget deficit to 5-6% of GDP.
The proposed package aims to strengthen the impact of sanctions and deal another blow to the weakened aggressor. The suggested restrictions are expected to increase the Russian budget deficit to 7-9% of GDP, limit the operations of key industries, and compensate for Ukraine’s losses.
New sanctions and measures against the Russian Federation by the team of experts of KSE Institute includes three main pillars of the future actions:
• Constraining Russia by reducing the oil price cap from $60/bbl to $30/bbl, banning direct Russian gas sales to Europe, and imposing bans on further goods (diamonds, uranium, iron ore, steel products).
• Isolating Russia by imposing full sanctions on the main companies in the oil and gas industry, the main metals and mining companies, and imposing further steps to tighten financial sanctions (including those against Gazprombank).
• Making Russia pay by confiscating frozen Russian assets and disbursing them to pay compensation to all Ukrainians affected by Russia’s invasion and financing Ukrainian reconstruction.
This package is estimated to reduce Russia’s exports by $70 bn, widen the budget deficit, and reduce growth. The experts of KSE Institute call on Ukraine’s international allies to accelerate implementation of the proposed measures to deprive the Kremlin from the finances to wage the war of aggression in Ukraine.
The full text of the “Sanctions Priorities 2023” package by the experts of KSE Institute is available at the link: https://bit.ly/41nWALv