Western sanctions on Russia are inflicting increasing economic pain, Mateusz Morawiecki, the Polish prime minister, has said.
Morawiecki made the claim upon the conclusion of an EU summit in Brussels on May 31 where EU leaders agreed on an oil embargo against Russia, hitting at the foundations of the country’s economy.
“The sanctions are slowly beginning to work in a number of areas,” Morawiecki said. “They did not work immediately and would not work immediately, but just look at the Russian budget’s tax revenue – it is rapidly decreasing from sectors not related to commodities, so, for example, from VAT and other taxes not related to commodities.”
However, this shortfall has so far been made up for with revenue from the sale of oil, the prime minister added.
Another effect of the sanctions, according to Morawiecki, is that Russia has been losing its potential for development and creativity, making the economy increasingly commodity-based. (The First News/Business World Magazine)
