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Economy

As Global Economy Tanks, Future Russian Sanctions Get Harder For West To Swallow

Kyiv wants the West to hit at the heart of the Russian economy, especially its energy exports, as the best weapon Ukraine and its allies may have. But with the EU preparing its 7th package of sanctions, it must strike a delicate balance as the global economy is on the brink of a major crisis.

Berlin protest gas

Protestors in Berlin, Germany call for a gas embargo on Russia

Oleksandr Detsyk

- Analysis-

KYIV — The European Union has begun work on its seventh package of sanctions against Russia. Even though the EU is delaying the implementation of more effective oil and gas sanctions, Russia is expected to face a tangible economic downturn in the summer. Therefore, a full-scale financial crisis is likely to take place in autumn.

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According to the most modest estimates, Russia will lose up to 10% of GDP. Personal incomes will decrease by 20-25%. Inflation will be above 10%. The numbers may seem relatively low, but the Russians did not experience this even in the worst years of their recent history, 1993 and 1998.

“Sanctions do not have a one-time effect. This is such a multi-level process," says Ukrainian economist Oleksiy Kushch. "I think there will eventually be more than ten different sanctions packages. Currently we are only in the first third of what's to come."

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FOCUS: Russia-Ukraine War

"Welcome To Our Hell..." Ukrainian Foreign Minister Dmytro Kuleba Speaks

In a rare in-depth interview, Ukraine's top diplomat didn't hold back as he discussed NATO, E.U. candidacy, and the future of the war with Russia. He also reserves a special 'thank you' for Italian Prime Minister Mario Draghi.

Dmytro Kuleba, Foreign Minister of Ukraine attends the summit of foreign ministers of the G7 group of leading democratic economic powers.

Oleg Bazar

KYIV — This is the first major interview Ukrainian Minister of Foreign Affairs Dmytro Kuleba has given. He spoke to the Ukrainian publication Livy Bereg about NATO, international assistance and confrontation with Russia — on the frontline and in the offices of the European Parliament.

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At 41, Kuleba is the youngest ever foreign minister of Ukraine. He is the former head of the Commission for Coordination of Euro-Atlantic Integration and initiated Ukraine's accession to the European Green Deal. The young but influential pro-European politician is now playing a complicated political game in order to attract as many foreign partners as possible to support Ukraine not only in the war, but also when the war ends.

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