Skip to main content

Question for Foreign and Commonwealth Office

UIN HL1476, tabled on 23 July 2014

To ask Her Majesty’s Government what criteria they are using to assess the impact and effectiveness of current European Union sanctions on Russia.

Answered on

11 August 2014

We judge the impact and effectiveness of sanctions based on a range of economic and political factors. Sanctions are designed to impose a cost for Russia’s actions in Ukraine, deter further escalation of this crisis, and support the wider diplomatic effort. EU measures already announced have exacerbated negative trends in Russia’s economy; capital flight in the first half of 2014 was greater than for the whole of 2013; and we have seen a significant reduction in expected growth. Russian access to western financial markets will be severely constrained as lenders consider the risks of Russian exposure in the current climate. The strengthening of sanctions should signal clearly to the Russian leadership that their policy of trying to destabilise Ukraine will have a cost for the Russian economy. The EU’s measures have in-built review mechanisms. The sanctions implemented on 31 July are in force for one year, with a review of implementation after three months.