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The impact of the 2022 sanction crisis on household consumption in Russia: A quantitative analysis

Author

Listed:
  • Valentin Voytenkov

    (HSE University, Moscow; Russian Federation)

  • Olga Demidova

    (HSE University, Moscow; Russian Federation)

Abstract

This paper analyses how the 2022 sanction crisis affected household consumption in Russia. Using data from the Russian Longitudinal Monitoring Survey (RLMS-HSE), we group households into five clusters by the employment sector of the household head. In terms of the methodological framework, we apply mean comparison and Kolmogorov–Smirnov tests, as well as panel data models. Our principal finding is that the crisis led to a stronger quantitative reallocation of expenditures than qualitative changes in behaviour. Russian households are reluctant to significantly alter their consumption structure. Furthermore, households headed by employees in sub-sanctioned business companies suffered more, while those in sanctioned sectors, such as real estate, agriculture, public, and defence, saw income and consumption benefits.

Suggested Citation

  • Valentin Voytenkov & Olga Demidova, 2025. "The impact of the 2022 sanction crisis on household consumption in Russia: A quantitative analysis," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 79, pages 72-98.
    • Handle: RePEc:ris:apltrx:021522
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    Keywords

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    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H12 - Public Economics - - Structure and Scope of Government - - - Crisis Management
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R29 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other

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