FT praised Russia’s preparations for new US and EU sanctions

FT: Russia is better prepared than the EU for the consequences of possible sanctions

Russia is sufficiently prepared for the consequences of possible sanctions, writes the Financial Times. The European Union, in turn, could not reduce dependence on Russian gas, oil and other raw materials.

Russia has prepared for the sanctions that Western countries promise to impose in the event of its “invasion” of Ukraine, writes financial times.

As the newspaper notes, Moscow was helped in this, in particular, by actions aimed at reducing dependence on the global financial system.

The newspaper quoted Russian Finance Minister Anton Siluanov as saying in an interview with RBC last week that the Russian economy would be able to withstand US sanctions. He added that Russia has already created a safety cushion in the form of the National Wealth Fund (NWF) – it will help protect the economy. According to Siluanov, Russian financial institutions will be able to cope with the risks that may arise.

“In general, we will withstand the restrictions that are being discussed today, but I think that things should not come to this,” Siluanov said.

The Financial Times also noted the de-dollarization of the economy initiated by the Russian authorities. In 2018, President Vladimir Putin backed the government’s plan in response to the tightening of US sanctions. According to ING bank, in 2014-2019, the share of the dollar in Russia’s trade and financial flows fell by 15-20 percentage points.