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Explaining the Limited Impact of Sanctions on Russia

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  • Floudas, Demetrius

Abstract

Upon the commencement of Russia's military intervention in Ukraine in February 2022, a collective response was swiftly initiated by the United States, the European Union, G7 nations, and their allies. This materialised in the form of an unparalleled assemblage of economic, financial, diplomatic, and supplementary sanctions, which have been undergoing successive modifications and additions throughout the ensuing months. Initially, Western analysts forecast dire repercussions for Russia, with some predicting a double-digit decline in gross domestic product. However, actual projections have been significantly revised downward. This paper aims to enumerate and explain in brief the factors that have prevented the Russian economy from a momentous downturn, in spite of the unprecedented extent of imposed sanctions.

Suggested Citation

  • Floudas, Demetrius, 2023. "Explaining the Limited Impact of Sanctions on Russia," MPRA Paper 121346, University Library of Munich, Germany, revised Jan 2024.
    • Handle: RePEc:pra:mprapa:121346
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    File URL: https://mpra.ub.uni-muenchen.de/122660/1/MPRA_paper_121346.pdf
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    References listed on IDEAS

    as
    1. T. Clifton Morgan & Constantinos Syropoulos & Yoto V. Yotov, 2023. "Economic Sanctions: Evolution, Consequences, and Challenges," Journal of Economic Perspectives, American Economic Association, vol. 37(1), pages 3-30, Winter.
    2. Marek Dabrowski & Svetlana Avdasheva, 2023. "Sanctions and Forces Driving to Autarky," Springer Books, in: Marek Dabrowski (ed.), The Contemporary Russian Economy, chapter 0, pages 271-288, Springer.
    3. James K. Galbraith, 2023. "The Gift of Sanctions: An Analysis of Assessments of the Russian Economy, 2022 to 2023," Working Papers Series inetwp204, Institute for New Economic Thinking.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Russia; sanctions; Ukraine war; Russian economy; rouble; dollar;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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