The EU’s sanctions on Russia are due to expire in July and, while it is most likely that they will be renewed, it is possible that this comes alongside a broad timetable for scaling them back subject to certain conditions having been met. In this Update, we answer four key questions about the sanctions and what lifting them would mean. While we think there would be a positive impact on the economy, boosting GDP by around 0.5%-pts, the impact on financial markets could be surprisingly small and short-lived.
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