US: Russian economy continues to deteriorate

US Treasury Under Secretary Adeyemo made assessments on sanctions against Russia at the Council on Foreign Relations ahead of the anniversary of the Russia-Ukraine War.

Stating that the economic tools used by the US against Russia limited the Kremlin’s administration, Adeyemo said that sanctions and export controls reduced Russia’s ability to replace the more than 9,000 military equipment lost since the start of the war. , halting production at major defense facilities and preventing production of tanks and aircraft, he said causes the loss of essential components.

“From now on, our export controls and sanctions will continue to prevent Russia from accessing the equipment needed to make up for these losses, and our sanctions will make it more difficult for the Kremlin to use the remaining resources it has available to buy the weapons it needs. needs.” said.

Noting that Russia’s economic data looked better than expected at the start of the war, Adeyemo said the sanctions forced the Kremlin to use limited resources to support its economy.

ADDITIONAL STEPS ARE PLANNED TO “DESTROY” THE RUSSIAN INDUSTRY

Recalling that actions such as blocking access to the reserves of the Russian Central Bank, imposing sanctions on some Russian banks and imposing restrictions on the SWIFT system, caused foreign capital and companies to leave the country, causing the ruble to depreciate by 50 percent, Adeyemo said: “Despite all the efforts of the Kremlin, the Russian economy continues to deteriorate.” he said.

The Undersecretary of the Treasury of the United States, Adeyemo, affirmed that by 2026 a loss of 190,000 million dollars in the gross domestic product (GDP) of Russia is estimated.

Noting that Russia had a budget deficit of $47 billion, rather than a budget surplus, contrary to what was forecast last year, Adeyemo claimed that this was the second-highest budget deficit recorded by the country in the post-Soviet period.

Adeyemo explained that industrial production in the country has also been declining for 9 months in a row and that they plan to take additional measures “to further destroy the Kremlin’s industrial base.”

“WE WILL CONTINUE DOING MORE”

Noting that the application of the Russian oil price ceiling also significantly reduced the country’s energy revenues, Adeyemo said: “Last month, Russia’s monthly oil and gas revenues fell to their lowest level since 2020, declining by a 46 percent compared to a year ago. saying.

“We have more work to do and we will continue to do more until we end Russia’s illegal occupation,” Adeyemo said. he said.

Emphasizing that they will continue to provide the assistance they need to Ukraine, Adeyemo also stated that they plan to launch a new initiative to strictly enforce already implemented sanctions and export controls.

Adeyemo asserted that the Kremlin is actively looking for ways to circumvent sanctions and that the US will work closely with its allies in the G7 and the EU against this.

Concern over Russia’s deepening ties with China

Noting that the United States is concerned about Russia’s deepening ties with China, Adeyemo said China cannot supply Russia with the advanced semiconductors it needs.

Adeyemo stated that they saw limited support for Russia from countries like China and other countries whose companies want to stay connected to the global economy.

Stating that the US and its allies have warned those trying to avoid sanctions, Adeyemo stressed that Chinese companies that try to avoid sanctions and export controls against Russia will face consequences. (AA)