The redistributive impact of restrictive measures on EU members: winners and losers from imposing sanctions on Russia

Abstract:

EU sanctions on Russia created concerns among its members. It is well known that sanctions impose a cost on their targets as well as on the senders, as lamented by European governments, but the costs of EU sanctions on its members have not been fully explored. This article intends to fill this gap by looking at the cost of EU sanctions on Russia. Who is bearing the cost among EU countries?

This article argues that sanctions had a redistributive impact across the EU. Whereas exports fell for all countries, with Germany, Italy and Finland in the leading positions, the article shows that there are economic sectors that increased their exports to Russia after the imposition of sanctions, which occurred particularly in countries as Greece, Sweden, Luxembourg and Bulgaria. This conclusion is reached by looking at the export flows from individual EU member states divided by SITC sectors to Russia.