Summary
The economic war between Russia and the West continues to impact both sides, with significant effects on Russia's economy. Russia has lost much of its European gas market and faces ongoing financial challenges due to sanctions. The U.S., under President Trump, maintains sanctions on Russia’s oil industry, further straining Russia’s economy.
Key Facts
- Russia's invasion of Ukraine has caused economic destruction, with reconstruction costs estimated at $588 billion by the World Bank.
- Russia's gas exports to the EU have dropped from 150 billion cubic meters annually to 38 billion.
- This reduction in gas exports is leading to a financial loss of about 34 billion euros ($40 billion) annually for Russia.
- Approximately $335 billion of Russian assets are frozen worldwide.
- Russia's National Wealth Fund is depleting rapidly, with the risk of being exhausted by the year's end.
- U.S. sanctions on Russian oil companies, Rosneft and Lukoil, are affecting Russia's global oil sales.
- President Trump’s administration maintains these economic measures despite discussions of possible cooperation if a ceasefire is reached.
