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world17h ago
Three myths about the Russia economic war
- Russia’s economy continues bleeding despite some military‑related production strength, with sanctions deepening the downturn.
- Europe’s gas market loss undercuts Moscow, with EU demand down sharply after the invasion and sanctions.
- Sanctions push Russian oil into a cheaper, riskier market, forcing discounts to secure buyers.
- The US sanctions agenda targets Rosneft and Lukoil, constraining Russia’s key export channels.
- The EU may tap Russia’s frozen assets to support Kyiv, potentially bypassing last‑minute loan plans.
- A third myth is that Europe must bear the cost of supporting Kyiv; asset usage could offset the burden.
- Brussels considers further sanctions, including potential gaps in trading Russian crude through third countries.
- The broader aim is to pressure Moscow while preventing a total collapse of its economy, to avoid concessions.
- The World Bank estimates reconstruction costs for Ukraine could reach $588 billion if the war ends today.
- Despite sanctions, some Russian oil remains in global markets, albeit with increased risk and reformulation.
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