MOSCOW, April 7 (RIA Novosti) – EU financial losses if broad economic sanctions are imposed against Russia could reach a trillion euros, according to Sergei Glazyev, an adviser to Russian President Vladimir Putin.
“It’s an open question who would sustain greater losses from the sanctions,” Glazyev told the Russian RT TV channel in an interview over the weekend.
“If the US tries to apply the Iranian model, which implies a total isolation from the global financial system denominated in US dollars and euros, then, according to our calculations, the losses for the EU may reach one trillion euros,” he added.
According to Glazyev, Germany alone stands to lose 200 million euros. “But the greatest economic damage will, surprisingly, fall on Ukraine whose interests [the EU] is so vehemently trying to protect, as well as the Baltic states, who are acting with the most aggression,” he said.
Glazyev said the Baltic states could lose an equivalent of their annual GDP under broad sanctions against Russia.
“Therefore, economic sanctions are suicidal for Europe,” he said.
The presidential adviser added that if Russian financial transactions are blocked, European banks will suffer as “hundreds of billions in payment obligations will be suspended,” and such a destabilization of the entire European financial system could risk another world war.
Ukraine saw a change of power on February 22, resembling a coup. The country’s parliament ousted President Viktor Yankovich, amended the Constitution and called for an early presidential election on May 25. Moscow has questioned the legitimacy of the parliament’s decisions.
Crimea, formerly a part of Ukraine, held a referendum on reunification with Russia on March 16 in reaction to dangerous nationalist rhetoric from the new leadership in Kiev. Over 96 percent of voters supported integration into the Russian Federation, and a treaty with Moscow providing for reunification was signed March 18.
In an attempt to penalize Russia for what the US considers illegal actions, Washington and Brussels imposed targeted economic sanctions on several Russian officials, including visa bans and asset freezes.
Russia insists the referendum was fully compliant with international law and has reiterated its obligation to protect the Russian-speaking population of the peninsula, all the while voicing disagreement with the economic sanctions.
The EU has not announced a final decision on further sanctions, but has threatened to impose them if the situation around Ukraine escalates further.
