G. Skaistė: "Lithuania's Example Inspires Others to Contribute to Ukraine's Victory"
Minister of Finance Gintarė Skaistė, while participating on the Washington Times' Capitol Hill Show, emphasized that Lithuania is one of those countries that constantly calls on its partners to increase support for Ukraine and tighten sanctions against Russia.
"We are a small but determined country, by our example we encourage and push other countries to make decisions that would lead to the victory of Ukraine. We help to the best of our ability – Lithuania's contribution to Ukraine in terms of military, financial and humanitarian aid amounts to 1.3 % of GDP, which is a lot. If other countries would do the same, it would be a very serious support," says the Minister.
She emphasized that the sanctions applied by the Western countries have a significant impact on the Russian economy and public finances, although the negative impact is perhaps slower than many would like. However, at the end of this year, Russia should feel the impact of the sanctions. The Minister noted that the application of sanctions is more like a marathon than a sprint – their effect grows stronger with time, every day the aggressor is bitten more and more painfully.
According to her, one of the most effective sanctions is the setting of oil price caps, which reduces revenue to the Russian budget, and if the aggressor wants to maintain the war machine, it will have to use its national fund on a large scale, which is not infinite.
On the Capitol Hill Show, G. Skaistė emphasized the contribution of Lithuania and Western countries in rebuilding the economy of Ukraine: "We have experience, we know how to help and we have funds for that. However, it is very important to start reconstruction without waiting for the end of the war, especially to rebuild power plants and ensure electricity production, this would allow Ukrainian businesses to operate, and the country would collect more taxes."
According to the World Bank, about USD 400 billion are needed for the reconstruction of Ukraine, so on the Washington Times' Capitol Hill Show the Minister emphasized the need to use frozen Russian assets for the reconstruction of Ukraine. It is estimated that Russian assets frozen in Western countries amount to about USD 300 billion of central bank reserves and another USD 50 billion of oligarchs' funds.
Last updated: 18-05-2023
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