The European Union has stated that the current status quo in the Russian – Ukrainian relations does not give the Union another choice but to extend the visa bans and assets freezing for another six months.
This week the European Union has announced they will maintain the visa bans and asset freezing targeting Russian interests for a further six months. This comes as a shock to the already suffering Russian economy.
The measures were imposed following Russia’s annexation of Krimea, and the territorial disputes in Eastern Ukraine, later on, for which Russia was said to foment and support.
While unrest and civil battles are maintained within the Eastern Ukrainian region, the EU issued a statement that the current situation is an obstacle to the lifting of the sanctions, as no serious progress has been made to give a definite end to the problem.
Despite the Ukrainian troops and the so called “Russia backed separatists” were supposed to honour a ceasefire in the region, both sides keep carrying artillery strikes perpetuating the division of the country into pro-Ukrainian and pro-Russian parties.
The Russian economy in now a step closer to an engrained recession, which is aggravated by the constant plunge of the crude oil prices.
As a result of the ongoing sanctions, Russian companies find it hard to access capital to grow or support their investments, having a direct impact on the entire Russian economy. The Rubles declining value has also lead to high inflation rates and affected the consumption habits of the Russian people. Many believe that if oil prices remain low, this could force Russia to head towards a default.