Europe to lose its share of Russian market due to ‘foolish’ sanctions – Russian PM
Europe will not regain its share of the Russian market after the sanctions war is over, as it will already be occupied by other local and foreign businesses, Russian Prime Minister Dmitry Medvedev has warned.
Russia and the West will eventually “come to agreements
sooner or later, as sanctions don’t last forever,” Medvedev
said in an interview with Vesti 24 TV channel.
“These foolish sanctions will pass, but international
relations will continue. And currency markets will open up,"
he added.
The prime minister stressed that “the niches in our [Russian]
economy, which will by then be occupied by local produces or
other foreign producers...our European counterparts wouldn’t be
able to come back.”
According to Medvedev, “this is the price Europe will have to
pay” for trying to put Russia under economic pressure.
He assured that Asian and Latin American companies – which will
replace the Europeans on the Russian market – will maintain their
positions after relations between Moscow and the EU return to
normal.
“We’re decent people. If we reach agreements then we fulfill the
existing contracts, including those with our Latin American and
Asian counterparts, of course. And those of our Western partners,
who’ll be eager to return, will only be able to take the
remaining share, nothing more,” he explained.
Medvedev has labeled the European Union’s decision to sanction
Moscow in the investment sphere as “senseless,” but
promised that Russia “will get through this.”
The prime minister went on to say that the damage to the Russian
economy is not done by sanctions, but by internal limitations
within the country.
“What’s the problem with the current situation in the Russian
economy? It’s not in the sanctions. The damage done by sanctions
equals around five percent and everything else is our internal
structural constraints; the misalignment of our economy that has
developed already in 20th century,” he explained.
At the same time, Medvedev stressed that – despite current
tensions – Russia has no plan to abandon the European markets.
“We supply between 130 billion to 140 billion cubic meters of
gas and 200 million tons of oil to Europe. For us, it’s a very
important market. A market that we conquered,” he said.
“If our European partners want make an absurd decision to
oust us from this market, we will stay there, as it’s exciting
for us,” the prime minister added.
But if the EU continues to act with prejudice towards Russia,
“many of our products, a significant portion our resources,
and much of our trade will switch to the Asia-Pacific
region,” Medvedev said.
After the Republic of Crimea reunited with Russia this March, the
US and EU introduced several waves of sanctions against Russian
politicians and businessmen, and some of their assets, as well as
major banks, oil, and defense companies.
Moscow replied to the restrictive measures from the West by
placing a year-long ban on food imports from the US and European
Union member states beginning August 7.
