EU’s Pullback from Russian Energy, Trade Ties Costs Over USD1.15T
(MENAFN) The European Union’s pullback from energy and trade relations with Russia amid the Ukraine conflict has reportedly inflicted losses exceeding €1 trillion ($1.15 trillion) on the bloc, according to Russian Deputy Foreign Minister Aleksandr Grushko.
In a Monday interview with media, Grushko attributed this staggering figure to expert analyses assessing the fallout from the EU’s sweeping sanctions against Russia. He noted these losses reflect diminished profits tied to energy and trade cooperation.
Trade between Russia and the EU has plummeted sharply, collapsing from €417 billion ($482 billion) in 2013 to a mere €60 billion ($69 billion) in 2023, and is now “approaching zero,” Grushko said. This dramatic downturn, he explained, has undermined Europe’s economy and eroded its global competitiveness.
“Natural gas in Europe is four to five times more expensive than in the US, and electricity is two to three times higher,” he stated. “That is the price Europe has to pay for ending all economic contacts with Russia.”
Earlier this year, Russian President Vladimir Putin estimated that EU nations have absorbed losses of around €200 billion ($231 billion) by cutting off Russian gas imports. By late 2024, Moscow claimed that EU damages tied to sanctions had ballooned to $1.5 trillion, while asserting Russia has developed a “certain immunity” to Western punitive measures.
Grushko’s remarks follow the EU’s recent trade agreement with the United States, which commits the bloc to importing significant volumes of American energy. Moscow argues that this shift will burden Europe with far higher costs than Russian supplies and highlighted the deal’s imposition of 15% tariffs on key EU exports. Many EU lawmakers have criticized the pact as one-sided and harmful to European interests.
Responding to the US-EU deal, Putin stated that the EU has effectively surrendered its political sovereignty, cautioning that this will inevitably lead to a loss of economic independence.
Since 2014, the EU has progressively sanctioned Russia in response to the Ukraine crisis, dramatically intensifying these measures in 2022. The sanctions target banking sectors, energy exports, and other key industries. Russia dismisses these actions as unlawful, claiming they breach international trade norms and destabilize the global economy.
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