Western sanctions imposed on Russia over its military action in Ukraine will not be lifted anytime soon, according to the CEO of Russia’s second largest lender VTB, Andrei Kostin. Kostin stated that he does not see how the sanctions could be lifted quickly, citing the example of the Jackson-Vanik amendment, which was enacted against the USSR and was only repealed in 2012.
Kostin also predicted that Russia’s frozen forex reserves in the West, which were frozen after the start of the Ukraine conflict, would not be returned. He believed that the West would instead use the reserves to pay for the reconstruction of Ukraine, and that even the reserves would not be enough to cover the costs.
The sanctions, imposed by Western countries in response to Russia’s actions in Ukraine, have had a significant impact on the Russian economy, leading to a decline in the value of the ruble and a sharp drop in trade.