Von der Leyen urges tougher sanctions as Russia's war economy overheats
European Commission President Ursula von der Leyen (Getty Images)
Western countries must increase sanctions pressure on Russia. The Russian war economy is already close to the edge, and if pushed further, it will collapse — and that threat will force the Kremlin to come to the negotiating table, said European Commission President Ursula von der Leyen.
The President of the European Commission recalled that the 18th package of sanctions against Russia targets the main economic sources of the Russian regime. She noted that Russia's economy is already so overheated due to military orders that it could collapse if additional pressure is applied.
She referred to recent remarks by Russia's Minister of Economic Development, who acknowledged that the country is on the verge of recession. Interest rates have reached 20 percent, inflation stands at 10 percent, and the overheated war-driven economy is nearing its breaking point.
She also reminded that the European Union has committed to providing Ukraine with two million artillery shells and has invested €2.1 billion in Ukrainian defense. All of this is being financed through frozen Russian assets.
She stressed the importance of the origin of these funds, pointing out that the EU is using windfall profits from Russia's frozen assets, meaning that, in effect, Russia is paying for the weapons Ukraine is using.
Sanctions against Russia's shadow fleet
Currently, the main source of income for the Russian regime is illegal oil trading that circumvents international sanctions. This trade relies on a semi-legal fleet of aging tankers — Russia's so-called shadow fleet. More details about this fleet can be found in the RBC-Ukraine report.
Recently, the United Kingdom introduced a new package of sanctions against Russia. According to official information, the restrictions target the shadow fleet and companies that contribute to Russia's military aggression against Ukraine. In June, Australia also imposed sanctions for the first time against the Kremlin's shadow fleet, placing dozens of tankers under restrictions.
