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Russian Agricultural Industry under Sanction Wars

2022-11-16 · Alexandra Lukyanova, Ayaz Zeynalov

The motivation for focusing on economic sanctions is the mixed evidence of their effectiveness. We assess the role of sanctions on the Russian international trade flow of agricultural products after 2014. We use a differences-in-differences model of trade flows data for imported and exported agricultural products from 2010 to 2020 in Russia. The main expectation was that the Russian economy would take a hit since it had lost its importers. We assess the economic impact of the Russian food embargo on agricultural commodities, questioning whether it has achieved its objective and resulted in a window of opportunity for the development of the domestic agricultural sector. Our results confirm that the sanctions have significantly impacted foodstuff imports; they have almost halved in the first two years since the sanctions were imposed. However, Russia has embarked on a path to reduce dependence on food imports and managed self-sufficient agricultural production.

📄 PDF Abstract BibTeX arXiv:2211.09205

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