By Staff, Agencies

The European Union’s efforts to sever energy and trade ties with Russia over the Ukraine conflict have inflicted massive economic damage on the bloc, costing it more than €1 trillion [$1.15 trillion], according to Russian Deputy Foreign Minister Aleksandr Grushko.

In an interview with Izvestia, Grushko said the figure is based on expert estimates of the impact of EU sanctions imposed on Russia since 2014, and especially after their dramatic expansion in 2022. The cost reportedly reflects the loss of profits from energy and trade cooperation with Moscow.

Grushko highlighted the steep decline in trade volume, noting that EU-Russia trade fell from €417 billion [$482 billion] in 2013 to just €60 billion [$69 billion] in 2023. “Trade is now approaching zero,” he remarked, warning that Europe’s economy has lost much of its competitiveness in the process.

“Natural gas in Europe is now four to five times more expensive than in the US, and electricity costs two to three times more,” he said. “This is the price Europe pays for cutting off economic ties with Russia.”

His comments echo earlier statements by Russian President Vladimir Putin, who estimated in June that the decision to reject Russian gas had already cost EU economies around €200 billion [$231 billion]. By late 2024, Russian officials raised the total estimated cost of EU sanctions to $1.5 trillion.

Despite these developments, Russian officials claim their economy has developed a “certain immunity” to Western sanctions.

Grushko also pointed to a recently concluded EU-US trade agreement that obliges the bloc to buy large volumes of American energy — reportedly at much higher prices than Russian supplies — while accepting 15% tariffs on key EU exports. The deal has triggered criticism within the EU, with some politicians calling it one-sided and detrimental to European economic interests.

President Putin has framed the agreement as evidence that the EU has surrendered its political autonomy to Washington, arguing that this loss of sovereignty is translating into economic subordination.

The EU began targeting Russia with sanctions in 2014 following the onset of the Ukraine crisis, and greatly intensified them in response to the 2022 escalation. The restrictions have focused on banking, energy, and industrial sectors. Moscow has rejected the measures as illegal and in violation of global trade rules, claiming they undermine global economic stability.