Russia Sanctions – How to Make Them Work
This report gives an overview of the effect of Russia sanctions and provides recommendations for further steps. We start with a look at the purpose of sanctions, showing that the goal of sanctions is two-fold: inhibiting Russiaʼs capacity to wage war against Ukraine and undermining the Kremlin’s long-term capacity to launch another war.
Though sanctions have not inflicted a truly devastating macroeconomic effect yet, this dynamic is gradually changing. Sanctions targeted towards the financial and energy sectors have weakened Russiaʼs economy. That said, the effects have not yet reached a sufficient level to undercut the ability of Moscow to finance the war.
On the energy front, the EUʼs priority should be directed at the reduction and/or stabilization of energy prices, especially for gas and electricity. Market inefficiencies in these sectors have exacerbated Europeʼs vulnerability to Russian energy extortion.
The bans on technology and equipment exports to Russia and voluntary company withdrawals, particularly in technology-related sectors, have proven to be the most effective measures to date. Weapons manufacturing, car production, and air transportation have been hit hardest. To force an end to the war, it would be prudent to double down on technology sanctions by introducing additional measures restricting IT services, limiting third party supplies and improving coordination among allies.
Learn more in the report below by Anna Kolesnichenko and Jakub Wiśniewski.
Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or EACEA. Neither the European Union nor the granting authority can be held responsible for them.