Following the U.K.’s exit from the European Union, Russia is probably among the few winners of the historic referendum.
Russia was hit with sanctions by the EU for its annexation of Crimea in 2014 with the U.K. being the most vocal critic of Russia’s actions. The U.K.was instrumental to the sanctions in the financial, energy, and defense sectors. Last month, EU officials reportedly voted to extend the sanctions for another six months against Russia.
With the U.K. voting to leave the EU, several countries such as Austria and Hungary have expressed their intentions to lift or soften the sanctions as they can no longer afford to miss out on trade activities with Russia. Italy’s Upper House of Parliament has already approved a resolution opposing any renewal of sanctions while the French Parliament recently adopted a resolution urging Brussels to drop all sanctions.
As Britain goes out of the EU, Moscow now has the opportunity to renegotiate terms. This opportunity is reportedly better for Russia’s economy in the long term, as the country has been in an economic slump e for the past two years due to the sanctions. Falling oil prices did not help Russia either as the country’s petroleum industry is one of the largest in the world.
