Zelenskyy: Sanctions on Russian banking system, energy sector are most effective
The most effective sanctions against Russia are sanctions against the Russian banking system and energy sector, Ukrainian President Volodymyr Zelenskyy said.
"What can create more problems for the 'Russians'? The 'Russians' have a large budget. And the financing of the defense-industrial complex and its large budget. That is, the question is money. The main money, anyway, they have from the energy sector. Of course, it is very difficult for them to move when sanctions are imposed on the banking system," Zelenskyy said during a conversation with journalists on Friday.
He said the Russians use roundabout ways, in particular, they work through India, China, Turkey, and the former republics of the Soviet Union, so sanctions on the banking system definitely slow down the process and create difficulties.
"There are opinions that the banking system is more effective. And I believe that the energy system is more effective. That is why I asked our partners – let's impose sanctions on both the banking and energy sectors, since these two areas are the most effective. Energy is absolutely clear. In the energy sector, there is money not only direct from taxes, but also dividends from energy companies that help Putin replenish the budget," Zelenskyy said.
According to the president, the Russians also use their shadow economy, which can be replenished from the energy sector.
"Since the same thing happened during the Soviet Union – increased production. Increased production in the Middle East, increased production in the world. Due to production – an increase in this volume – the price decreases. Today, you can reduce the price with a price cap. But for the price to be not high, you need to increase the volume. That is, in addition to the 'Russians,' there are those who can increase the volume of production. For example, Saudi Arabia," the president said.