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Economy minister Ulyukayev: EU’s toughest sanctions variant not to be dramatic for Russia

The threats of broader sanctions have been rejected by Moscow, which has said the language of penalties is counterproductive and will strike back at Western countries

Alexey Ulyukayev ИТАР-ТАСС/ Алексей Никольский

Alexey Ulyukayev

© ИТАР-ТАСС/ Алексей Никольский

PETROPAVLOVSK-KAMCHATSKY, June 28, 14:00 /ITAR-TASS/. Russia’s Economic Development Ministry has drafted three variants of forecasts of the country’s economic development in case sectoral sanctions are imposed against Moscow over the situation in Ukraine, Russian Economic Development Minister Alexey Ulyukayev said Saturday.

“We have developed three variants which differ by the degree of toughness. The first variant includes luxury articles, caviar, furs, the second one is tougher and the third one includes the entire complex - metals, fertilizers, oil, gas and so on, taking into account the factors of price and volume,” Ulyukayev said.

“The economy is able to withstand such a scenario. Of course, economic growth rates are going seriously below zero. The rates of investments are even more negative, revenues dwindle, inflation grows, government reserves shrink,” he said during the Vesti v Subbotu program on the Rossiya 1 TV channel.

“But the development of events is not dramatic on the whole,” Ulyukayev said.

Western nations have subjected some Russian officials and companies to sanctions, including visa bans and asset freezes, following Crimea’s incorporation by Russia in mid-March.

The West, led by the United States, has repeatedly threatened Russia with further punitive measures, including economic ones, for its position on Ukraine (incorporation of Crimea and what the West claimed was Moscow’s alleged involvement in protests of federalization supporters in Ukraine’s Southeast).

Russia has repeatedly dismissed Western claims that it could in any way be involved in protests in the Southeast of Ukraine, which started after Crimea refused to recognize the authorities propelled to power during a coup in Ukraine in February and reunified with Russia in mid-March after some 60 years as part of Ukraine.

The threats of broader sanctions have been rejected by Moscow, which has said the language of penalties is counterproductive and will strike back at Western countries.

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