The most negative impact is definitely going to hit Russian citizens themselves, because prohibiting of food imports dramatically lowers their utility, reduces economic activity, including job creation, and last but not least it cuts disposable income in their wallets.
Hungary, whose people have a long, historic dislike for Russia is now torn between the West and the East. Although financed heavily by the European Union, Hungary seeks shady partnership with Putin.
Clueless looks of politicians will be once again drawn to the ECB. In addition to reports on starting recession, they are supported also by the legend of deflationary spiral that regularly emerges from monetary depths to destroy the shoots of economic success.
The EU’s new economic Agreements with Georgia, Moldova and Ukraine could have a major geopolitical impact on Europe’s relationship with Russia.
Who has caused the crash of a malaysian boeing? Putin, little green people? Not really. We all did. The European Union, NATO, UN, international community – everyone.
Ukraine shows that, when pressure is applied, Potemkin institutions reveal themselves for what they really are. The lessons for countries in the neighborhood, most of all Russia, should be apparent, as, although there are major differences between Ukraine and its anxious neighbor, at the most fundamental levels, the institutional stagnation is the same.
In March, Russia annexed Crimea, a peninsula with population of 2.4 m in the south of Ukraine, after it failed to divert Ukraine from the course for European integration. The escalation in Donbas could have been a first step of a large scale Russian intervention into the mainland Ukraine.
To realize where it is better – in Russian or European Union – easiest is to visit any “brotherly nation” like Kyrgyzstan, where you can still see Lenin’s big statue and hear to the Stalin’s mythology that Lenin had an important role in creating of their national identity.
By demonstrating a willingness to use force to intimidate and invade its neighbours, and by declaring a doctrine of protecting Russian speakers everywhere, Russia has created uncertainty, instability and insecurity across our continent. And across the whole Euro-Atlantic area.
From the security standpoint, there are three important areas where disconnection from Russia and connection with Europe are of utmost importance.