A new BOFIT Policy Brief 4/2022

Heli Simola: Trade sanctions and Russian production

Abstract
The EU, US and several other countries have responded with a wide range of new economic sanctions on Russia in response to the military attack on Ukraine. These sanctions include various restrictive measures on trade with Russia. In this brief, we examine the potential short-term effects of trade sanctions on Russian production with an input-output framework. We find that the trade sanctions can have substantial negative effects on Russian production when Russia is unable to find alternative markets for imports and exports. 

Read the Policy Brief: Trade sanctions and Russian production

BOFIT Policy Briefs are available online in the Bank of Finland's institutional repository: BOFIT Policy Briefs (bofit.fi)