The statement does not suffer from the beginning of an ambiguity: “We are going to cause the collapse of the Russian economy”, declared Bruno Le Maire, Tuesday 1is mars on FranceInfothrough Western economic sanctions imposed in response to the Russian invasion of Ukraine. “The economic and financial balance of power is totally in favor of the European Union, which is in the process of discovering its economic powersaid the Minister of the Economy. We are targeting Vladimir Putin, we are targeting the oligarchs, but we are also targeting the entire Russian economy. »
The total Russian assets that the allies will freeze represent “almost 1 trillion dollars”, said the Minister, who added: “We are going to wage an all-out economic and financial war on Russia”the day after a massive increase in interest rates to 20% by the Russian central bank. “Russian foreign exchange reserves are melting like snow in the sun and Vladimir Putin’s famous war chest is already reduced to almost nothing”, he said.
“The urgency is to raise the cost of war for President Putin”said the French presidency on Monday, considering that the sanctions already taken “hurt more than President Putin anticipated”. The Mayor also said on Tuesday that the Russian people would suffer the effects of the sanctions “because of its leader” ; “We don’t know how to do otherwise”, he acknowledged.
Ruble plunge
Closure of airspace, freezing of assets of personalities or companies, questioning of financial or commercial links… Europe and the United States in the lead have multiplied announcements in recent days in order to dissuade Moscow from continuing its assaults on Ukraine. One of the latest measures, the freezing of Russian central bank foreign currency assets held abroad, caused the Russian currency to plunge on Monday, as many people rushed to the bank to withdraw cash. As a matter of urgency, Russia on Monday banned its residents from transferring foreign currencies abroad and forced Russian exporters to convert a large part of their income into rubles.
On the question of the collateral damage that this set of sanctions will have on the French economy, the minister acknowledged that “ Europe may have a bit more inflation, because maybe gas prices will go up a bit”. The minister said he wanted to extend the tariff shield on energy prices beyond its scheduled end in June.
Regarding the protections provided by the State, the Minister distinguished between households and businesses. “We made the decision to protect individuals. This is the top priority.” did he declare. But there won’t be “no global tariff shield for all companies”. Those that will be supported will first be those that “consume a lot of gas and are exposed to international competition”he detailed.
“When I listen to the French and talk to them, I see that they are perfectly aware that freedom has a price, that the defense of freedom in Ukraine has a price, that the defense of our most fundamental values has a price, supported the Minister. This price, we are doing everything with the President of the Republic and the Prime Minister to make it as bearable as possible. »