Sanctions against Russia. The US has made a demand to the European Union
Category
Economics
Publication date

Sanctions against Russia. The US has made a demand to the European Union

The US is talking about lifting sanctions on Russia

According to US Secretary of State Marco Rubio, all parties must agree to the terms of a peaceful settlement between Russia and Ukraine. This even includes the European Union lifting its sanctions against Russia.

Points of attention

  • The role of the European Union in the peace process is becoming increasingly relevant in the context of sanctions issues.
  • The US goal is to ensure a sustainable and mutually acceptable peace in the region.

The US is talking about lifting sanctions on Russia

The head of the State Department claims that "in order to put an end to any conflict, all parties must make concessions."

However, he added that it would be wrong to "predetermine them."

According to Marco Rubio, all parties must agree to the terms of the future settlement.

It's important to understand two things. The first is that the only leader in the world who can do this, who can even bring people together to start talking about this seriously, is President Trump. The second thing I would say is that in order for a conflict to end, all parties to the conflict have to agree on a solution, it has to be acceptable to them.

Marco Rubio

Marco Rubio

Head of the US Department of State

The American leader also spoke about the future role of official Brussels.

As Marco Rubio noted, the European Union will have to sit at the negotiating table at some point because they also have sanctions in place.

The head of American diplomacy added that the main goal is to end this war in a way that ensures a peace that is just, lasting, sustainable, and acceptable to all parties involved.

"What does that look like? Well, that's what we're going to continue to engage on," Rubio emphasized.

Category
Economics
Publication date

Ending the war against Ukraine could destroy Russia's economy

Putin is afraid to stop the war

The Wall Street Journal concluded that the Russian economy has become dependent on the war in terms of jobs, wages and growth. Accordingly, if a truce is achieved on the front, the aggressor country will be on the verge of collapse.

Points of attention

  • The cessation of war-related production could result in slower growth or recession in Russia in the near term.
  • Experts predict that the decrease in domestic consumption following the end of the war could further impact Russia's economy.

Putin is afraid to stop the war

According to Heli Simola, a senior economist at the Bank of Finland's Institute of Economics, almost half of the aggressor country's economic growth in 2024 was directly due to war-related production.

It is also impossible to ignore the fact that payments to the families of Russian invaders fighting in Ukraine have increased the well-being of some of the poorest regions of the country.

Experts predict that the cessation of such stimulation will lead to a decrease in domestic consumption.

If Russian dictator Vladimir Putin wants to avoid economic collapse, he will have to continue spending at current levels long after the war is over.

If military spending is cut, it will lead to job losses and general disillusionment in many Russian regions, said Janis Kluge, a Russia expert at the German Institute for International and Security Affairs.

According to Capital Economics forecasts, the decline in spending could lead to slower growth or even recession in Russia in the near term.

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