David O'Sullivan is convinced that Russia is facing a financial crisis comparable to the crisis of 1998. The EU Commissioner warned that the collapse of the Russian economy could begin at any moment.
EU Commissioner for Sanctions David O'Sullivan believes that the Russian economy is on the brink of collapse. "Sanctions alone cannot stop the Russian war against Ukraine, but I am absolutely convinced that four years of sanctions have had a significant impact," he stated in an interview with Redaktionsnetzwerk Deutschland published on Tuesday, March 10. "The Russian economy is in a catastrophic state. All economic indicators are flashing red," he added.
"The country is sliding into recession, facing serious issues with public finances, inflation, and very high interest rates," continued the senior official of the European Commission. According to him, banks are sitting on bad loans that the industry was forced to take to finance the war economy, and now businesses cannot service them.
"Russia is on the brink of financial collapse"
"Russia is on the brink of a financial collapse similar to the crisis of 1998. Of course, a dictator determined to continue the war at any cost may act just like that. But sooner or later, the situation will become unbearable," the Irish diplomat is convinced.
O'Sullivan mentioned the so-called "Hemingway moment" - when asked how bankruptcy occurs, Ernest Hemingway allegedly replied: "Gradually, then suddenly." The EU Commissioner for Sanctions is convinced that this applies to Russia as well. "I believe that the Russian economy will collapse first very slowly, and then very quickly. We just don't know exactly when this Hemingway moment will occur," he said.
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