Is Russia's economy buckling under Western sanctions? [INTERVIEW]

Russia has been hit by successive rounds of Western sanctions since its full-scale invasion of Ukraine, leading some analysts to argue that the country’s apparent economic resilience masks deep structural weaknesses.

Photo:

IAR/Cezary Piwowarski/Polskie Radio

EU ambassadors were expected on Tuesday to make another attempt to agree on a 21st package of sanctions against Russia.

We’re sanctioning Russia at speed and scale.

Today’s measures, together with the upcoming 21st sanctions package, will add 250 individuals and entities to the Russia sanctions regime.

This is our biggest round of individual designations since Moscow’s 2022 full-scale invasion,… pic.twitter.com/zjWxbrbunH

— Kaja Kallas (@kajakallas) July 13, 2026

Previous attempts were derailed by disagreements over a price cap on Russian oil, a travel ban on Russian military personnel and sanctions targeting Patriarch Kirill, a vocal supporter of President Vladimir Putin and Moscow's war on Ukraine.

Some economists argue that Russia's wartime economy is being sustained by heavy state spending and rising debt, warning that its banking sector could collapse under mounting pressure and that the Kremlin may eventually be forced to draw on household savings or pension assets to plug growing budget gaps.

The EU has adopted sanctions in response to:

➡️ Russia's cyberattacks and destabilising actions against the EU and its member states
➡️ Russia's human rights violations against Ukrainian prisoners
➡️ the restriction of freedom of expression in Russia

🔗 https://t.co/JZSwaYQRPq pic.twitter.com/hWHeiNVj1S

— EU Council (@EUCouncil) July 13, 2026

Danuta Isler spoke to Iwona Wiśniewska, an expert on the Russian economy at the Center for Eastern Studies in Warsaw, about the true state of Russia's economy and the impact of Western sanctions.

Click on the audio player above to listen.