The European Union's 12th package of sanctions against Russia will not inflict any material harm on the Russian economy but is jeopardizing the EU itself because of the potential loss of additional sales markets, Jacques Sapir, research director at the Paris-based Higher School of Social Sciences (Ecole des Hautes Etudes en Sciences Sociales), told TASS. "If [we] consider that the economic situation in the main EU countries, such as Germany, France and Italy, is far from flourishing and that the economies of these countries are already in a state of recession, it can only be assumed that their future does not seem too rosy when they find themselves stuck between the loss of export markets and the rise in expenses," the expert said. The EU's new ban on Russian diamonds "will upset the Belgians while making the Indians rejoice" simply by shifting trade flows away from Antwerp and toward Mumbai, Sapir noted. The same is true for the ban on imports of steel and other metals sector products, as Russia has already shifted its sales focus in this area to China, while aluminum and its byproducts can also be sold in Asian markets, including India and China. "The impact of such embargo expansion on Russia will likely be insignificant.
The effects may prove more significant for European producers," the expert added.