The Ukraine peace talks between the US and Russia are also turning into pro-economic discussions. Representatives from Russia and the United States have initiated talks on reviving economic cooperation. Kirill Dmitriev, the CEO of the Russian direct investment fund, is at the centre of the negotiations.

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According to him, US companies suffer equally from these sanctions, having lost an estimated $300 billion after exiting the Russian market. While details remain undisclosed, Dmitriev indicated that both sides are considering economic initiatives that could move forward within 2-3 months.

Impact of sanctions on the Russian economy

Russia has been severely impacted by the sanctions onslaught following the war in Ukraine. Measures include trade restrictions, freezing Russian assets worth $300 billion, and cutting Russian banks off global financial networks. Despite this, the Russian economy has survived, instead thrived, driven by military spending and 'shadow' oil revenues. The discussions in Saudi Arabia have come as a major relief for the Russian economy, which is slowly seeing the adverse effects of sanctions in the long run. 

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The question remains --- Could the US lift or ease economic sanctions on Russia? President Donald Trump has already voiced scepticism over economic sanctions. While he hinted at putting sanctions on the negotiations table to get some leverage, he also signalled a willingness to strike a broader deal.

While the Russian economy dealt with the consequences of sanctions, western brands were also in the crossfire. Many had to exit a lucrative Russian market and reassess their business priorities as geopolitical uncertainties mount.

Strategy shift for the European Union?

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The European Union has not embraced the idea of opening to Russia, at least economically. The region controls most of Russia's frozen assets and has implemented 15 rounds of sanctions targeting Russian energy.

The EU will face a reality check if the US softens its stance on Russia. The union is also facing its own economic challenges, with corporations periodically highlighting the economic consequence of sanctions.

The coming months will determine whether these talks lead to a strategic realignment.