Sanctions Have Led to Outflow of Capital and Depletion of Investments, Says Hololei ({{commentsTotal}})

Henrik Hololei
Henrik Hololei Source: Photo: Postimees/Scanpix

European Commission Deputy Secretary General Henrik Hololei, who was recently named the European of the Year by an Estonian NGO, said the effects of US and EU sanctions against Russia will be noticeable in the figures from the first quarter.

“Sanctions by the European Union and by US should not be viewed separately and they supplement each other,” Hololei said in an interview with on Saturday, adding that the fact that 28 EU member states have agreed on a number of sanctions shows the union's strength.

He said capital has flown out of Russia in the first quarter and investments have dried up as a result of the sanctions.

The Russian Federation has not held up its part of the bargain of the Geneva talks, and the sanctions have so far done little to change Russia's political direction, Hololei said.

“It is imperative now to help modernize Ukraine. The EU has announced an eleven-billion-euro aid package to help Ukraine reform. IMF has green lighted a 17-billion-US-dollar (12 billion euros) loan,” Hololei said.