Sir Nicholas Soames: To ask the Secretary of State for Foreign and Commonwealth Affairs, what assessment he has made of the effectiveness of sanctions against Russia; and if he will make a statement.

Mr David Lidington, Minister of State for Europe: EU sanctions are delivering a significant cost to Russia for its actions in Ukraine. The fall in the global oil price has driven an economic slump in Russia, including a shrinking economy and sharply declining currency. The wide-ranging restrictions of EU and US economic sanctions are exacerbating these negative trends. Russian sovereign debt has been downgraded to junk status by two ratings agencies and forecasters predict that the Russian economy will contract by between 3.5% and 5% during the current year. Sanctions are an important element of the range of diplomatic measures we are undertaking to effect a change in Russia’s behaviour, including to compel Russia to fulfill its obligations under the Minsk agreements. EU member States stand ready to impose additional measures if necessary.

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