IDEAS home Printed from https://ideas.repec.org/a/ris/integr/0916.html
   My bibliography  Save this article

Sanction Busting Within and Outside Regional Integration

Author

Listed:
  • Issabayev, Murat

    (Narxoz University, Almaty, Kazakhstan)

  • Moldashev, Kairat

    (Suleyman Demirel University, Kaskelen, Kazakhstan)

Abstract

The trade balance of Russia with its top 20 trade partners has increased over the last few years till 2022 with few exceptions such as the United States and the United Kingdom. Even the Russian trade deficit with Germany till 2021 has turned to trade surplus in 2022. However, as a result of the strict sanctions imposed on certain trade products by European Union (EU) nations and the US, the total import values of Russia declined from $266 billion in 2021 to $199 billion in 2022. To explain if third countries, including Eurasian Economic Union (EAEU) nations, aid Russia by means of sanctions-busting, we offer several empirical tests. In this paper, we use annual cross-sectional data for 22,648 products exported to Russia along with tariff rates imposed on them in 2022. We first notice that even though the number of sanctioned exports is three times lower than that of non-sanctioned exports, the total import value from sanctioned exports is predicted to be larger than that from non-sanctioned exports on average by 0.36 percentage point. Second, the Russian import values from both EU and Rest of the World (ROW) exports are significantly greater than those from EAEU nations. Last but not least, EAEU nations, which are Russia's partners within the union, and EU nations, are more susceptible to activities such as sanction-busting compared to other third countries.

Suggested Citation

  • Issabayev, Murat & Moldashev, Kairat, 2024. "Sanction Busting Within and Outside Regional Integration," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 39(3), pages 671-687.
  • Handle: RePEc:ris:integr:0916
    as

    Download full text from publisher

    File URL: https://www.e-jei.org
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    sanction-busting; trade sanctions; Eurasian Economic Union; European Union;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations

    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:ris:integr:0916. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yunhoe Kim (email available below). General contact details of provider: https://edirc.repec.org/data/desejkr.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.