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The Shattered Cooperation: The European Union – Russian Federation Energy Trade Under the Shadow Of Sanctions

Author

Listed:
  • Andreea-Emanuela Drăgoi

    (Institute for World Economy, Romanian Academy)

Abstract

The regional conflict from Ukraine that emerged a year ago, in February 2022, has quickly evolved into a widespread economic confrontation between the West and the Russian Federation, due to the enormous amount of sanctions imposed to the latest as a retaliation for the unprovoked military invasion into the territory of an independent and sovereign state. While the Western sanctions have targeted various economic field (from finance, to energy and trade), for the purpose of this paper we have chosen to analyse the impact of the trade sanctions in the energy field while highlighting how the European Union (EU)-Russia energy trade has shrunken under the sanctions blow. This paper provides an in depth quantitative analysis of the bilateral trade between the two parties, focusing on the evolution of energy trade after the imposition of sanctions. The methodological approach uses the latest Eurostat statistics but also a qualitative analysis of the studied literature in the field to underline the huge impact of sanctions on the bilateral cooperation between EU and Russian Federation. Our main finding shows that the sanctions have seriously affected the economic cooperation between EU and Russian Federation, causing a major decrease of the bilateral trade, but the energy trade still remains important, as the enforced bans have not completely stopped the unwanted energy link between the two parties.

Suggested Citation

  • Andreea-Emanuela Drăgoi, 2023. "The Shattered Cooperation: The European Union – Russian Federation Energy Trade Under the Shadow Of Sanctions," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 11(2), pages 68-76, December.
    • Handle: RePEc:ntu:ntugeo:vol11-iss2-68-76
    as

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    References listed on IDEAS

    as
    1. Madina Khudaykulova & He Yuanqiong & Akmal Khudaykulov, 2022. "Economic Consequences and Implications of the Ukraine-Russia War," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 8(4), pages 44-52, May.
    2. Andrei Shleifer & Daniel Treisman, 2005. "A Normal Country: Russia After Communism," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 151-174, Winter.
    3. Justin Damien Guenette & Philip George Kenworthy & Collette Mari Wheeler, 2022. "Implications of the War in Ukraine for the Global Economy," World Bank Publications - Reports 37372, The World Bank Group.
    4. Napoleon Pop & Andreea-Emanuela Dragoi, 2019. "Russia and the Transforming European Security," Global Economic Observer, "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences;Institute for World Economy of the Romanian Academy, vol. 7(2), pages 16-26, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

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    JEL classification:

    • F00 - International Economics - - General - - - General
    • F1 - International Economics - - Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

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