Which sanctions matter? Analysis of the EU/Russian sanctions of 2014

0542082 - NHU-C 2022 RIV US eng J - Journal Article
Bělín, Matěj - Hanousek, Jan
Which sanctions matter? Analysis of the EU/Russian sanctions of 2014.
Journal of Comparative Economics. Roč. 49, č. 1 (2021), s. 244-257. ISSN 0147-5967. E-ISSN 1095-7227
R&D Projects: GA ČR GA18-18509S
Institutional support: Progres-Q24
Keywords : Russia * international trade * sanctions
OECD category: Applied Economics, Econometrics
Impact factor: 2.429, year: 2021
Method of publishing: Open access
https://doi.org/10.1016/j.jce.2020.07.001

We use a quasi-natural experiment of reciprocal imposition of trade sanctions by Russia and the EU since 2014. Using UNCTAD/BACI bilateral flows data we take this unique opportunity to analyse both sanctions. In particular, we study the effectiveness of narrow versus broadly defined sanctions, and differences in the effectiveness of sanctions imposed on exports and imports. We show that the Russian sanctions imposed on European and American food imports resulted in about an 8 times stronger decline in trade flows than those imposed by the EU and the US on exports of extraction equipment. These results do not appear to be driven by diversion of trade flows via non-sanctioning countries. Hence the difference in sanctions’ effectiveness can be attributed to the limited retroactivity of Western sanctions, which allowed exemptions for exports made pursuant to contracts made prior to 2014.
Permanent Link: http://hdl.handle.net/11104/0319575