Imposing sanctions versus posing in sanctioners' clothes: the EU sanctions against Russia and the Russian counter-sanctions
2021
Abstract
Using three different estimation techniques, we show that the 2014 EU sanctions on exports to Russia were enforced very selectively and caused only a minor disruption to trade flows, if any. In contrast, the Russian counter-sanctions against imports from the EU caused major losses in trade, indicating very thorough enforcement.
We show that these results are consistent with the theoretical literature, which emphasises the difficulty of imposing sanctions on exports and the potential value of sanctions as a signalling device, rather than an economic weapon.