Tag: Sanctions Effectiveness
Benjamin Hilgenstock on Closing Sanctions Gaps Against Russia
Despite several rounds of Western sanctions, Russian drones and missiles still include Western-made parts. In Deutsche Welle’s report, “Western parts in Russian drones: Are sanctions working?”, Benjamin Hilgenstock, a senior economist at the Kyiv School of Economics (KSE), explains why export controls have not fully closed the sanctions gaps against Russia.
Export Controls and the Rise of Complex Trade Networks
“Export controls on many of these goods were imposed right at the beginning of the major Russian offensive in the spring of 2022. Yet, many of these sanctioned components still reach Russia through complex trade networks involving intermediaries in countries like China, the United Arab Emirates, Turkey, and Kazakhstan,” Benjamin Hilgenstock, Senior Economist at KSE
According to Hilgenstock, many indirect trade networks operate beyond EU or U.S. jurisdiction. As a result, restricted technologies continue entering Russian markets. These supply chains often involve intermediaries and shell companies, which makes enforcement difficult. Moreover, they reveal weaknesses in global export control systems.
Closing Sanctions Gaps Through Stronger Oversight
Hilgenstock notes that sanctions have raised costs and slowed Russia’s access to advanced technologies. However, there are still gaps that could be closed. Hilgenstock believes manufacturers of restricted goods should face tougher due diligence obligations. In addition, he suggests the financial sector’s compliance model could guide improvements in export enforcement.
How Indirect Trade Enables Sanctions Evasion
The Deutsche Welle report shows that re-export routes through countries such as Turkey, Kazakhstan, and the UAE allow restricted components to return to Russia. Consequently, these sanctions evasion networks weaken the impact of Western policies. To counter this, Hilgenstock emphasizes the need for international coordination, real-time trade monitoring, and greater transparency in global supply chains.
Read the full article on Deutsche Welle for Benjamin Hilgenstock’s analysis of sanctions enforcement and export control challenges.
Learn More About Sanctions
Visit the KSE Institute Sanctions Hub to explore in-depth monitoring of international sanctions against Russia. The Hub maintains a consolidated sanctions database and provides detailed reports on the impact of sanctions on Russia’s economy. It also features analyses of sanctions effectiveness, revealing patterns of enforcement and circumvention, as well as position papers and sectoral reports offering expert insights into key industries and policy recommendations from KSE researchers.
Visit the SITE Sanctions Portal to gain insights into sanctions on Russia and its economic retaliation measures. This resource provides a detailed timeline and comprehensive evidence base that brings together data, analysis, and expert commentary. It helps researchers, journalists, and policymakers navigate the evolving sanctions landscape. The SITE Sanctions Portal explores the economic consequences of Western sanctions and Russia’s strategic responses.
Sanctions on Russia: How They Impact Europe Energy Security and the Region
As Russia’s war in Ukraine continues, Western sanctions are beginning to chip away at the Kremlin’s war machine. Although President Vladimir Putin appears undeterred, the sanctions are draining resources that could otherwise fund the conflict.
How Sanctions Work?
According to Maria Perrotta Berlin, Assistant Professor at the Stockholm Institute of Transition Economics (SITE), sanctions are most effective when they come as a surprise. “If the threat of sanctions didn’t deter aggression, their implementation is unlikely to change behavior — unless they are more severe than expected,” she explains.
Sanctions, however, are a blunt instrument. They can unintentionally harm other economies and are rarely effective on their own. Maria Perrotta Berlin notes that “the stick of sanctions works best when paired with a carrot”. For instance, offering a clear path toward lifting restrictions, as was done in Iran’s nuclear negotiations.
The Three Types of Sanctions on Russia
Currently, three main categories of sanctions are in place against Russia:
- Financial sanctions: including restrictions on the Russian Central Bank, disconnection from the SWIFT system, and asset freezes. These measures have the most immediate impact.
- Trade sanctions: particularly on technology imports and energy exports. These take longer to affect the Russian economy and are more costly to sender countries.
- Sanctions of inconvenience: such as airspace closures, travel bans, and exclusion from international sports and cultural events. While symbolic, they contribute to isolating Russia on the global stage.
Such isolation can influence public opinion within Russia. It may generate opposition to the government — or conversely, trigger a “rally around the flag” effect that strengthens domestic support for Putin.
Signaling and Solidarity
Despite Putin’s resistance, the sanctions are sending a powerful signal both within Russia and abroad. They demonstrate the unity of Western nations and highlight that much of the world condemns Russia’s actions in Ukraine.
Experts say there is still room to tighten sanctions by expanding the list of targeted individuals, banks, and sectors, as well as closing loopholes used to bypass restrictions.
Regional Impacts: Belarus and Georgia
The FREE Network webinar, “The Sanctions on Russia, and Their Impact on the Region,” brought together experts from Belarus and Georgia to assess the broader consequences.
Belarus faces additional sanctions due to its support for Russia’s aggression. The country has already lost key export routes through both Russia and Ukraine. Its economy is reeling from the depreciation of the Russian ruble and fears of a banking crisis.
In Georgia, the war in Ukraine revives painful memories of the 2008 Russian invasion. While Georgia relies less on Russian gas than the EU, it remains vulnerable to rising oil prices and inflation, already at 13.7%. Nearly 90% of Georgia’s wheat comes from Russia, making food security a growing concern.
Learn More About the Russian War Economy and Sanctions
To learn more about Western sanctions and Russia’s countermeasures, visit the Sanctions Timeline. And for details on sanctions imposed on Russia and their effects, see the Evidence Base section of the sanctions portal. Explore more policy briefs on sanctioning Russia here.
Disclaimer: Opinions expressed during events, seminars and conferences are those of the authors; they do not necessarily reflect those of the FREE Network and its research institutes.