Sanctions against Russia: implications, prospects and circumvention

Abstract

Prior to the conflict, the situation in Ukraine had been escalating for several years. The nation is now divided between pro-Europe and pro-Russia activists and there seems to be no solution in sight. Within the scope of the conflict, Europe and the US have closely scrutinised Russia, accusing it of purposely destabilising east Ukraine. The EU and the US imposed sanctions on Russia in 2014 in response to its actions in the Ukraine conflict and its annexation of Crimea. Russia responded with counter-sanctions, mainly affecting agri-foods imports into Russia. This article first discusses both western and Russian sanctions in depth. It then analyses the impacts on both parties, illustrating how bilateral sanctions between the EU and Russia influence trade flows and economies. Possible methods of circumvention for both import bans and sanctions against individuals are also analysed and recommendations made to European producers regarding their dealings with Russia. Subsequently, the article shows why current sanctions are rather ineffective and provides suggestions for their improvement. Lastly, future prospects are deliberated.