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EU report: Sanctions will hit Russia hard in 2015

The sanctions are responsible for a fall in the value of the ruble and an outflow of capital from Russia, it said.

By Ed Adamczyk

BRUSSELS , Oct. 30 (UPI) -- A European Union analysis of the effects of economic sanctions against Russia said they will affect Russia far greater than EU countries.

Earlier this week, the EU chose not to establish further sanctions, which include restrictions on trade with Russia in the defense, financial and energy sectors. Diplomats agree there was no incentive for easing or expanding previous sanctions.

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A report presented by the European Commission, the EU's executive body, indicates any impact on EU member countries' economies "is expected to remain contained." Russia's growth rate will be reduced to 0.6 percent in 2014 and 1.1 percent in 2015. In May, growth rates of 1 percent in 2014 and 2 percent were predicted.

It added the sanctions have put downward pressure on the value of the Russian ruble. The EU estimated the outflow of capital from Russia this year will reach $120 billion.

While the sanctions maintain broad support, some countries have questioned whether they have any impact on the thinking of Russian President Vladimir Putin.

"The sanctions introduced in July and September are impactful on Russia and are indeed operating on the right pressure points. Their impact is being progressively felt and will increase," the report says.

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