“Russia has lost the European gas market for good. There is no possibility that Europe would again agree to fall into this trap of Russia,” said IMF Alternative Executive Director Vladyslav Rashkovan.

In an interview, he said Russia had lost what was left of access to the European gas market because Europe finally understood that Russian gas was a tool of war rather than an economic one.

Rashkovan represents Ukraine and 14 other states on the IMF Executive Board. Prior to joining the IMF, he served as Deputy Governor and a Member of the Board of the National Bank of Ukraine (NBU).

He recalled that Ukraine had warned the European partners since 2014 that “this is a weapon, not an economic tool.”

According to Rashkovan, the sanctions imposed on Russia are effective and it has no economic prospects in the future.

“That is why next year’s economy of the Russian Federation is predicted to be in the red. They lost access to technology, international money, and global companies. Structurally, this has a major influence on Russian economy,” Rashkovan emphasized.

He also noted that the Russian oil price cap, introduced in December, will have a big potential impact. “This is the most influential sanction for the economy of the Russian Federation because the Kremlin’s main income from oil will be further decreasing continuously,” he noted.

Separately, Rashkovan said Ukraine and Ukrainians had set an example of military, economic and institutional resilience for the whole world, as well as the ability to quickly adapt to challenging conditions. “Our government, our people have surprised the world.”

“Ukraine is an example for the world not only in terms of resistance to Russian aggression but also resilience, that is sustainability and adaptability in very challenging conditions. This deserves respect,” Rashkovan noted.

“I am really sad to talk about the war, but I am proud to talk about the performance of the banking and financial system, and the fact that the single treasury account, the finance ministry and the government as a whole, the parliament are working,” Rashkovan said.

In his words, Ukraine’s economy has suffered a lot. But, despite the war-related wounds and scars, public institutions have withstood.

“We have lived for many years in the Russian narrative that Ukraine is a corrupt state. But, if it had been so, Ukraine would have collapsed long ago. Our institutions turned out to be much stronger than expected. Our economy is viable, although losses are, of course, huge,” Rashkovan noted.

The story was filed by the News Desk. The Desk can be reached at info@thecorrespondent.com.pk.

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