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Cutting Putin’s Energy Rent: 'Smart Sanctioning' Russian Oil and Gas

Author

Listed:
  • Ricardo Hausmann

    (Harvard's Growth Lab)

  • Agata Łoskot-Strachota
  • Axel Ockenfels
  • Ulrich Schetter

    (Center for International Development at Harvard University)

  • Simone Tagliapietra
  • Guntram Wolff
  • Georg Zachmann

Abstract

Following the Russian aggression against Ukraine, major sanctions have been imposed by Western countries, most notably with the aim of limiting Russia’s access to hard international currency. However, Russia remains the world’s first exporter of oil and gas, and at current energy prices this provides large hard currency revenues. As the war continues, European governments are under increased pressure to scale-up their energy sanctions, following measures taken by the United States, the United Kingdom, Canada and Australia. This piece argues that given the inelasticity of Russia’s oil and gas supply, for Europe the most efficient way to sanction Russian energy would not be an embargo, but the introduction of an import tariff that can be used flexibly to control the degree of economic pressure on Russia.

Suggested Citation

  • Ricardo Hausmann & Agata Łoskot-Strachota & Axel Ockenfels & Ulrich Schetter & Simone Tagliapietra & Guntram Wolff & Georg Zachmann, 2022. "Cutting Putin’s Energy Rent: 'Smart Sanctioning' Russian Oil and Gas," Growth Lab Working Papers 186, Harvard's Growth Lab.
    • Handle: RePEc:glh:wpfacu:186
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    References listed on IDEAS

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    Keywords

    Ukraine War; Russia;

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