Russia’s invasion of Ukraine in February 2022 has provoked wide-ranging financial and economic sanctions from the US, Europe, and various other countries worldwide. This column assesses the economic effects of almost two decades of earlier sanctions on Russian firms to shed light on the impacts of this new wave of sanctions. Sanctions adversely affect firm performance in general, yet there is no clear impact on energy and oligarch-related firms. Evidence of preparedness for sanctions by these firms during the Crimea event in 2014 suggests one mechanism by which the impact of sanctions may be muted.
Nothing contributes so much to the prosperity and happiness of a country as high profits