Europe’s Russian connections

Aasim M. Husain, Anna Ilyina, Li Zeng 29 August 2014

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The conflict in Ukraine and the imposition of new sanctions against Russia by the US and the EU (second half of July) followed by Russia's counter-sanctions (August 7) signal an escalation of geopolitical tensions that has been strongly felt in Russian financial markets (see Chart 1). A deterioration in the conflict, as well as further escalation of sanctions and counter-sanctions, could have a substantial adverse impact on the Russian economy through direct and indirect (confidence) channels (IMF 2014a).

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Topics:  Europe's nations and regions Politics and economics

Tags:  Russia, sanctions, Eastern Europe

Russia’s tit for tat

Peter A.G. van Bergeijk 25 April 2014

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Since 16 March 2014, the EU (in concerted action with the US) has frozen assets and imposed travel bans on 33 persons and an individual bank. On 20 March, Russia counteracted with the reciprocal blacklisting of EU and US officials. This pattern of tit for tat raises the question of the comparative vulnerability of the EU and Russia. In assessing this vulnerability, is not just the ability to inflict economic damage that matters, however, but also the way economic damage translates into political change. This means that one needs to consider the political system.

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Topics:  Politics and economics

Tags:  Russia, EU, sanctions, Crimean crisis

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