Medvedev: Russia Has Suffered 25 Billion Euros in Losses from Sanctions

Dmitry Medvedev, the Prime Minister of Russia, acknowledged that international sanctions have caused significant damage to the Russian economy. However, he emphasized that the situation could have been worse and that Russia is now adapting to the circumstances. According to Reuters, Mr. Medvedev, who was present in the Russian parliament on Tuesday, April 20, referred to the list of international sanctions and stated, "The losses from the sanctions you are aware of are considerable." He added, "According to estimates by some foreign experts, Russia has suffered a total of 25 billion euros in losses, which is equivalent to one and a half percent of GDP, and this figure could multiply several times in 2015." Russia has faced severe sanctions from the United States and the European Union following its annexation of Crimea from Ukraine. Western countries accuse Russia of interfering in Ukraine's internal affairs and providing military and financial support to rebels in eastern Ukraine, but Moscow denies these allegations. Meanwhile, Russian officials have repeatedly asserted that the sanctions against the country have been "ineffective" and have no impact on resolving the crisis in Ukraine. However, the World Bank has warned that if the Ukrainian crisis deepens and sanctions continue, Russia's economic growth will turn negative. Dmitry Medvedev also reported to the Russian parliament on Tuesday that the Russian economy has shrunk by up to two percent. He stated that the situation could have been worse and that the Russian economy is currently stable. Mr. Medvedev also described the annexation of Crimea to Russia as "just" and compared it to the fall of the Berlin Wall and the reunification of Germany or the return of Hong Kong to China. The Russian government celebrated the anniversary of Crimea's annexation to its territory in late March and honored local officials in Crimea.