BRUSSELS, March 26 (UPI) -- Along with the low price of oil, sanctions imposed on Russia in response to crises in Ukraine have struck a major blow to its economy, a European leader said.
The European Union in March 2014 imposed sanctions against Russia after it annexed the Crimean Peninsula from Ukraine. Violence erupted in Ukraine the previous November after the former Soviet republic started a slow pivot toward the EU.
Sanctions imposed in July cut into the Russian energy sector, which accounted for more than half of the government's revenue.
Gabrielius Landsbergis, a Lithuanian member of the European Parliament steering aid to Ukraine, said Thursday the sanctions have created huge problems for the Russian economy.
"It's difficult to measure the exact results, but what we see is that together with the low oil prices, the Russian economy is really suffering," he said.
A forecast for 2015 by the Russian Economy Ministry expects export revenues to decline as Russian energy products wane from the world market.
The economic issue predates the slump in oil prices. The Russian economy approached "the threshold of recession" during the first half of 2014, the World Bank said.
"I think that we are already seeing the sanctions bearing fruit and I'm really hopeful that member states will provide support in the future," Landsbergis said.
Russian officials this week said the strength of the nation's currency was likely undervalued and an end to the economic contraction was in sight.
