Advanced

Sanction Evasion: The case of Russia’s counter-sanctions

Oranen, Tuomas LU (2018) NEKP01 20181
Department of Economics
Abstract
Sanction evasion can hamper the effect of international sanctions. This paper aims to establish whether the Russian sent counter-sanctions were evaded by the Western countries by using non-sanctioned countries as transit routes for the sanctioned
products. This question is analysed by estimating a gravity equation of trade by applying Pseudo-Poisson Maximum Likelihood and Ordinary Least Squares estimators in a difference-in-differences setup. The data covers all yearly trade flows between all 221 world exporters and importers for the period 2012–2016. The results suggest that on average, trade from sanctioned countries was diverted to nonsanctioned countries, but not further to Russia through these countries. Furthermore, exports in... (More)
Sanction evasion can hamper the effect of international sanctions. This paper aims to establish whether the Russian sent counter-sanctions were evaded by the Western countries by using non-sanctioned countries as transit routes for the sanctioned
products. This question is analysed by estimating a gravity equation of trade by applying Pseudo-Poisson Maximum Likelihood and Ordinary Least Squares estimators in a difference-in-differences setup. The data covers all yearly trade flows between all 221 world exporters and importers for the period 2012–2016. The results suggest that on average, trade from sanctioned countries was diverted to nonsanctioned countries, but not further to Russia through these countries. Furthermore, exports in sanctioned products to Russia’s neighbouring countries decreased from the Western countries, while the trade from the non-sanctioned neighbouring countries to Russia increased. In conclusion, no large-scale sanction evasion was present in the two years post-sanction imposition. (Less)
Please use this url to cite or link to this publication:
author
Oranen, Tuomas LU
supervisor
organization
course
NEKP01 20181
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Sanction evasion, Economic sanctions, Russia, Trade policy
language
English
id
8958663
date added to LUP
2018-09-26 09:33:37
date last changed
2018-09-26 09:33:37
@misc{8958663,
  abstract     = {Sanction evasion can hamper the effect of international sanctions. This paper aims to establish whether the Russian sent counter-sanctions were evaded by the Western countries by using non-sanctioned countries as transit routes for the sanctioned
products. This question is analysed by estimating a gravity equation of trade by applying Pseudo-Poisson Maximum Likelihood and Ordinary Least Squares estimators in a difference-in-differences setup. The data covers all yearly trade flows between all 221 world exporters and importers for the period 2012–2016. The results suggest that on average, trade from sanctioned countries was diverted to nonsanctioned countries, but not further to Russia through these countries. Furthermore, exports in sanctioned products to Russia’s neighbouring countries decreased from the Western countries, while the trade from the non-sanctioned neighbouring countries to Russia increased. In conclusion, no large-scale sanction evasion was present in the two years post-sanction imposition.},
  author       = {Oranen, Tuomas},
  keyword      = {Sanction evasion,Economic sanctions,Russia,Trade policy},
  language     = {eng},
  note         = {Student Paper},
  title        = {Sanction Evasion: The case of Russia’s counter-sanctions},
  year         = {2018},
}