IDEAS home Printed from https://ideas.repec.org/a/nea/journl/y2024i63p57-74.html

The impact of sanctions on the revenues of Russian companies

Author

Listed:
  • Zaytsev, Yu.

    (Institute for Applied Economic Research, RANEPA, Moscow, Russia)

  • Loshchenkova, A.

    (Institute of International Economics and Finance, Russian Foreign Trade Academy (RFTA), Moscow, Russia)

Abstract

The purpose of the study was to assess the impact of sanctions on the revenues of Russian companies. The paper provides a brief review of the literature on the issue, an analysis of the statistics of Russian companies that fell under sanctions, as well as an assessment of the impact of sanctions on their revenues. The analysis of the impact of sanctions on the activities of Russian firms was based on firms included in the sanctions lists of unfriendly countries. As of January 2023, the number of sanctioned firms was more than 1.3 thousand. The general conclusion is: inclusion in sanctions lists of unfriendly countries does not have a significant downward effect on the revenue of sanctioned firms compared to firms not included in the sanctions lists. The empirical assessment showed that among various types of sanctions only the financial ones have a significant negative effect. The purpose of the study is to assess the impact of sanctions on the revenues of Russian companies. The work provides a brief review of the literature on the issue under consideration, an analysis of the statistics of Russian companies subject to sanctions, as well as an assessment of the impact of sanctions on their revenues.

Suggested Citation

  • Zaytsev, Yu. & Loshchenkova, A., 2024. "The impact of sanctions on the revenues of Russian companies," Journal of the New Economic Association, New Economic Association, vol. 63(2), pages 57-74.
    • Handle: RePEc:nea:journl:y:2024:i:63:p:57-74
    DOI: 10.31737/22212264_2024_2_57-74
    as

    Download full text from publisher

    File URL: http://www.econorus.org/repec/journl/2024-63-57-74r.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.31737/22212264_2024_2_57-74?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Zaytsev, Yu. & Loshchenkova, A., 2023. "The impact of sanctions on the activities of Russian companies in the manufacturing sector of the economy in 2014-2021," Journal of the New Economic Association, New Economic Association, vol. 60(3), pages 50-65.
    2. Jamal Ibrahim Haidar, 2017. "Sanctions and export deflection: evidence from Iran," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 32(90), pages 319-355.
    3. James Levinsohn & Amil Petrin, 2000. "Estimating Production Functions Using Inputs to Control for Unobservables," NBER Working Papers 7819, National Bureau of Economic Research, Inc.
    4. E. Gurvich & I. Prilepskiy., 2016. "The impact of financial sanctions on the Russian economy," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 1.
    5. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November.
    6. Liudmila Popova & Ehsan Rasoulinezhad, 2016. "Have Sanctions Modified Iran’s Trade Policy? An Evidence of Asianization and De-Europeanization through the Gravity Model," Economies, MDPI, vol. 4(4), pages 1-15, October.
    7. repec:nos:voprec:y:2016:id:154 is not listed on IDEAS
    8. Ghasseminejad, Saeed & Jahan-Parvar, Mohammad R., 2021. "The impact of financial sanctions: The case of Iran," Journal of Policy Modeling, Elsevier, vol. 43(3), pages 601-621.
    9. Mohammad Reza Farzanegan & Bernd Hayo, 2019. "Sanctions and the shadow economy: empirical evidence from Iranian provinces," Applied Economics Letters, Taylor & Francis Journals, vol. 26(6), pages 501-505, March.
    10. Philip I. Levy, 1999. "Sanctions on South Africa: What Did They Do?," American Economic Review, American Economic Association, vol. 89(2), pages 415-420, May.
    11. Joshi, Sumit & Mahmud, Ahmed Saber, 2016. "Sanctions in networks: “The Most Unkindest Cut of All”," Games and Economic Behavior, Elsevier, vol. 97(C), pages 44-53.
    12. Gary Clyde Hufbauer & Jeffrey J. Schott & Kimberly Ann Elliott, 2007. "Economic Sanctions Reconsidered, 3rd edition (hardcover)," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 4075, January.
    13. Knobel, Alexander (Кнобель Александр) & Bagdasaryan, Kniaz (Багдасарян, Княз) & Loshchenkova, Anna (Лощенкова, Анна) & Proka, Ksenia (Прока, Ксения), 2019. "Sanctions: seriously and for a long time [Санкции: Всерьез И Надолго]," Published Papers 021901, Russian Presidential Academy of National Economy and Public Administration.
    14. Akbar E. Torbat, 2005. "Impacts of the US Trade and Financial Sanctions on Iran," The World Economy, Wiley Blackwell, vol. 28(3), pages 407-434, March.
    15. Ana Cecília Fieler & Marcela Eslava & Daniel Yi Xu, 2018. "Trade, Quality Upgrading, and Input Linkages: Theory and Evidence from Colombia," American Economic Review, American Economic Association, vol. 108(1), pages 109-146, January.
    16. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shokamanov, Yu. & Bayeva, Yu. & Balgarina, L., 2025. "Impact of anti-Russian sanctions on trade and economic relations between Russia and Kazakhstan," Journal of the New Economic Association, New Economic Association, vol. 69(4), pages 173-190.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ina C. Jäkel & Søren Østervig & Erdal Yalcin, 2024. "The effects of heterogeneous sanctions on exporting firms: Evidence from Denmark," Review of International Economics, Wiley Blackwell, vol. 32(1), pages 161-189, February.
    2. Dario Laudati & M. Hashem Pesaran, 2023. "Identifying the effects of sanctions on the Iranian economy using newspaper coverage," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 38(3), pages 271-294, April.
    3. Iman Cheratian & Saleh Goltabar & Mohammad Reza Farzanegan, 2023. "Firms persistence under sanctions: Micro‐level evidence from Iran," The World Economy, Wiley Blackwell, vol. 46(8), pages 2408-2431, August.
    4. Meyer, Klaus E. & Fang, Tony & Panibratov, Andrei Y. & Peng, Mike W. & Gaur, Ajai, 2023. "International business under sanctions," Journal of World Business, Elsevier, vol. 58(2).
    5. Dizaji, S.F. & Lis, P. & Murshed, S.M. & Zweiri, M., 2020. "What the political economy literature tells us about blockades and sanctions," ISS Working Papers - General Series 130655, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    6. Mustapha Douch & Terence Huw Edwards, 2022. "The bilateral trade effects of announcement shocks: Brexit as a natural field experiment," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 37(2), pages 305-329, March.
    7. Jerg Gutmann & Matthias Neuenkirch & Florian Neumeier, 2024. "Do China and Russia undermine Western sanctions? Evidence from DiD and event study estimation," Review of International Economics, Wiley Blackwell, vol. 32(1), pages 132-160, February.
    8. Görg, Holger & Jacobs, Anna & Meuchelböck, Saskia, 2024. "Who is to suffer? Quantifying the impact of sanctions on German firms," Journal of Economic Behavior & Organization, Elsevier, vol. 228(C).
    9. Defever, Fabrice & Imbruno, Michele & Kneller, Richard, 2020. "Trade liberalization, input intermediaries and firm productivity: Evidence from China," Journal of International Economics, Elsevier, vol. 126(C).
    10. Jim Levinsohn & Wendy Petropoulos, 2001. "Creative Destruction or Just Plain Destruction?: The U.S. Textile and Apparel Industries since 1972," NBER Working Papers 8348, National Bureau of Economic Research, Inc.
    11. Felbermayr, Gabriel & Kirilakha, Aleksandra & Syropoulos, Constantinos & Yalcin, Erdal & Yotov, Yoto V., 2020. "The global sanctions data base," European Economic Review, Elsevier, vol. 129(C).
    12. Jerg Gutmann & Matthias Neuenkirch & Florian Neumeier, 2024. "Political Economy of International Sanctions," Research Papers in Economics 2024-07, University of Trier, Department of Economics.
    13. Bai, Xue & Chatterjee, Arpita & Krishna, Kala & Ma, Hong, 2021. "Trade and minimum wages in general equilibrium: Theory and evidence," Journal of International Economics, Elsevier, vol. 133(C).
    14. Hufbauer, Gary Clyde & Jung, Euijin, 2020. "What's new in economic sanctions?," European Economic Review, Elsevier, vol. 130(C).
    15. Devasmita Jena & C. Akash & Prachi Gupta, 2024. "Deflecting economic sanctions: do trade and political alliances matter?," International Economics and Economic Policy, Springer, vol. 21(3), pages 543-567, July.
    16. Omid Zamani & Mohammad Reza Farzanegan & Jens-Peter Loy & Majid Einian, 2021. "The Impacts of Energy Sanctions on the Black-Market Premium: Evidence from Iran," Economics Bulletin, AccessEcon, vol. 41(2), pages 432-443.
    17. Costinot, Arnaud & Adao, Rodrigo & Carrillo, Paul & Donaldson, Dave & Pomeranz, Dina, 2020. "International Trade and Earnings Inequality: A New Factor Content Approach," CEPR Discussion Papers 15598, C.E.P.R. Discussion Papers.
    18. Xiaoxiao Hu & Ling He & Qi Cui, 2021. "How Do International Conflicts Impact China’s Energy Security and Economic Growth? A Case Study of the US Economic Sanctions on Iran," Sustainability, MDPI, vol. 13(12), pages 1-21, June.
    19. Gabriel Felbermayr & Constantinos Syropoulos & Erdal Yalcin & Yoto V. Yotov, 2025. "On the heterogeneous effects of sanctions on trade," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 58(1), pages 247-280, February.
    20. Campbell, Jason, 2024. "The link between import sources and export success: Evidence from China," International Economics, Elsevier, vol. 178(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L6 - Industrial Organization - - Industry Studies: Manufacturing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nea:journl:y:2024:i:63:p:57-74. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Tcharykov (email available below). General contact details of provider: https://edirc.repec.org/data/nearuea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.