IDEAS home Printed from https://ideas.repec.org/a/onb/oenbfi/y2018iq3-18b6.html
   My bibliography  Save this article

Sanctions and countersanctions − effects on economy, trade and finance

Author

Listed:
  • Iikka Korhonen

    ()

  • Heli Simola
  • Laura Solanko

Abstract

In this paper we review the history and current state of sanctions imposed on Russian entities by the EU, the U.S.A. and others, as well as Russia’s countersanctions. We try to assess what kind of economic effects these measures have had, although any such analysis is bound to be confounded by the large drop in the price of oil that occurred in 2014 and 2015. We find that sanctions have had a clear, negative effect on the Russian economy, although the decline in the price of oil affected Russian GDP much more strongly in 2014−2016. The U.S. and EU sanctions have worked e.g. by restricting Russian banks’ access to capital. EU countries’ trade with Russia and their market share in Russia have declined, but this is partly a continuation of a long-term trend. Russia’s countersanctions have e.g. affected exports of foodstuffs from the EU, but macroeconomic effects in the EU are very small.

Suggested Citation

  • Iikka Korhonen & Heli Simola & Laura Solanko, 2018. "Sanctions and countersanctions − effects on economy, trade and finance," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue Q3-18, pages 68-76.
  • Handle: RePEc:onb:oenbfi:y:2018:i:q3-18:b:6
    as

    Download full text from publisher

    File URL: https://www.oenb.at/dam/jcr:d45f7129-94eb-48f4-b4d7-e715d88c224a/06_Sanctions_and_countersanctions_feei_2018_q3.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Crozet, Matthieu & Hinz, Julian, 2016. "Friendly fire - the trade impact of the Russia sanctions and counter-sanctions," Kiel Working Papers 2059, Kiel Institute for the World Economy (IfW).
    2. repec:wfo:wstudy:60669 is not listed on IDEAS
    3. repec:eee:rujoec:v:1:y:2015:i:4:p:359-385 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Russia; sanctions;

    JEL classification:

    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions

    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:onb:oenbfi:y:2018:i:q3-18:b:6. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Markus Eller). General contact details of provider: http://edirc.repec.org/data/oenbbat.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.