Yiqun Chen, Frank Sloan, Monday, December 15, 2014 - 00:00

Aasim M. Husain, Anna Ilyina, Li Zeng, Friday, August 29, 2014 - 00:00

Peter A.G. van Bergeijk, Friday, April 25, 2014 - 00:00

In reaction to the Crimean crisis, the EU imposed certain sanctions on Russia. Russia responded by blacklisting EU and US officials. This column discusses the comparative vulnerability of the EU and Russia amid this tit for tat pattern. In purely economic terms, the EU is in a much better position than Russia. However, political regimes also matter. The autocracy score for Russia dampens the impact that the economic sanctions would have politically. The democratic nature of the European governments would translate the sanctions imposed by Russia into great political pressure for the EU. This makes the Russian tit for tat threat realistic.

CEPR Policy Research