On Monday, September 18, Kyiv School of Economics, European Policy Center and International Renaissance Foundation held a dialogue “Strengthening Sanctions Against Russia: What More Can and Should Be Done?”. During the discussion, members of the Yermak-McFaul International Sanctions Group and experts from leading European think tanks outlined the key sanctions objectives for the fall of 2023 and analyzed the current situation with the sanctions regime against Moscow.

The event featured notable attendees, including Tymofiy Mylovanov, President of Kyiv School of Economics; Nataliia Shapoval, Head of KSE Institute; Benjamin Hilgenstock, Senior Economist at KSE Institute; Anna Caprile, Political Analyst at the General-Directorate of Parliamentary Research; Torbjörn Becker, Director of the Stockholm Institute of Transitional Economics (SITE), Stockholm School of Economics; and Vladyslav Vlasiuk, Advisor to the Head of the Office of the President of Ukraine and Secretary of the Yermak-McFaul International Expert Group on Sanctions. Svitlana Taran, Research Fellow, European Policy Centre and KSE, moderated the dialogue.

«Russia understands force, not negotiations. We cannot afford to be passive. Together we must stop the Kremlin. The most important events take place on the battlefield. Sanctions complement and reinforce our military victories. This is the tool that allows us to deprive Russia of funds and components for weapons production», noted Tymofiy Mylovanov, President of Kyiv School of Economics.

Experts acknowledge the unprecedented scale, volume, and impact of EU sanctions against the Kremlin, imposed in response to Russia’s full-scale invasion of Ukraine. Thus, due to sanctions in the energy sector, Russia lost about 150 billion euros in revenue.

However, they also recognize existing shortcomings. According to Torbjörn Becker, Ukraine’s allies need to establish a simpler trade regime with Russia, minimizing contacts with the Russian economy, and intensifying pressure on the public sector.

Nataliia Shapoval asserts that members of the rehabilitation coalition should reduce their reliance on trade with Russia, lower the oil price ceiling, and bolster support for Ukraine.

«As for now, Russia’s trade balance is the lowest since COVID-19, they have only USD8 bn in currency, and a significant budget deficit. However, critical components and dual-use goods (USD26-27 bn annually) are finding their way back to Russia. We should stop it as soon as possible,» told Nataliia Shapoval.

Among the areas designated as top priorities for future sanctions, discussion participants highlighted the need to introduce secondary sanctions, eliminate gaps and loopholes in the existing sanctions regime, increase pressure on the energy and banking sectors, implement new individual sanctions against the family members of Russian propagandists, unify and harmonize restrictions, and expand the membership of the sanctions coalition.

You can watch the full discussion during the policy dialogue “Strengthening Sanctions Against Russia: What More Can and Should Be Done?” via link: https://epc.eu/en/events/Strengthening-sanctions-against-Russia~53a034