Kremlin Extends Economic Sanctions for Another Two Years

Russian President Vladimir Putin today signed a decree extending for another two years the economic sanctions imposed by the Kremlin in March 2022 “in response” to the anti-Russian sanctions policy of the USA, the European Union, Canada, Australia, Japan, and some other countries.

Until the end of 2025, Russian imports of goods and services from “unfriendly” countries that support the policy of sanctions against Russia will be strictly limited. In addition, Russia prohibits the export of various types of machinery and equipment to these countries, but primarily raw materials such as metals and wood, chemical and mineral fertilizers, chemical industry products, and agricultural products. The list compiled by the Moscow Council of Ministers and approved by Putin is very long.

According to Eurostat, between January and May 2023, Russian exports of refined copper and copper alloys to Europe decreased by five times compared to the corresponding period in 2022, falling to 32.2 thousand tons. During this period, the main importing countries of Russian copper were the Netherlands, Italy, Greece, Germany, Spain, and Bulgaria. In 2022, Russian exports of refined copper and copper alloys that are needed for the automotive industry and the production of electrical and electronic components amounted to 301.6 thousand tons, which is +2% compared to the results recorded in 2021.

European imports of iron ore from Russia are decreasing and in 2022 recorded a four-fold drop, to 2.9 million tons. Last year, Russia also reduced the export of metal products to Europe by 39%, to 13.6 million tons.

In May 2023, European Council President Charles Michel announced an embargo on the sale of Russian diamonds to the EU. For its part, the UK announced its intention to ban the import to the island of “made in Russia” diamonds, copper, aluminum, and nickel. Thus, Europe wants to mow down a strategic source of income from the Russian budget.