Ukraine war: Hungary’s Orban says sanctions on Russia left European economy ‘gasping for air’

Prime Minister Viktor Orban called on the EU to reconsider its strategy, saying prolonged punitive measures will ‘kill off the European economy’

The Kremlin has squeezed gas supplies to Europe in response to sanctions imposed against Moscow for its invasion of Ukraine

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Hungarian Prime Minister Viktor Orban. Photo: Reuters

Published: 5:55pm, 15 Jul 2022

The European Union has “shot itself in the lungs” with ill-considered economic sanctions on Russia, which, unless rolled back, risk destroying the European economy, Hungarian Prime Minister Viktor Orban said on Friday.

Gas supplies to Europe have tightened and fuel costs have soared since Russia’s invasion of Ukraine in February and subsequent sanctions, leaving countries scrambling to refill storage and diversify supply channels. Russia calls its actions in Ukraine a “special operation”.

The surge in gas and electricity prices forced nationalist Orban to curtail a years-long cap on utility prices for higher-usage households on Wednesday, rolling back one of the 59-year-old prime minister’s signature economic policies.

“Initially, I thought we had only shot ourselves in the foot, but now it is clear that the European economy has shot itself in the lungs, and it is gasping for air,” Orban, a long-time sanctions critic, told public radio in an interview.

Orban said Ukraine needed help, but European leaders should reconsider their strategy, as sanctions have caused widespread damage to the European economy without weakening Russia or bringing the months-long war closer to any resolution.