Questions tagged [sanctions]

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Will the value of ruble decrease in the long term if the sanctions against Russia are not lifted?

For simplicity, let's take the example of the USD-to-RUB rate. Currently, Russia manages to maintain it at around 60 RUB per USD. However, as far as I understand it, they manage to do it by selling ...
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1 vote
0 answers
58 views

What would happen if China were to suddenly stop all trade with the US?

What would happen if China were to suddenly stop all trade with the US (for political reasons)? Have any respectable economists made any predictions about the consequences of such a move for the ...
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12 votes
6 answers
3k views

How do economic sanctions work? How do they not create an arbitrage opportunity?

(Not sure if this should be on Politics.SE) This is something I've been thinking about since the Russian invasion of Ukraine. Many countries enacted sanctions on Russia in response. Let's say one of ...
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5 votes
1 answer
1k views

Does Russian Ruble strengthening mean the sanctions did not hurt Russian economy?

After imposing the sanctions to Russia, 1 USD skyrocketed to 139 Rubles, but now it is back to the pre-war exchange rate. Moreover, it kept decreasing almost every day recently. Does this mean that ...
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1 vote
1 answer
68 views

Why doesn't Russia buy USD to pay its external debt and avoid default?

(I apologize beforehand for this extremely clueless question! I have searched for the answer for a long time without success.) Credit rating agencies have recently declared Russia to be close to ...
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0 votes
0 answers
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Can Russia bypass western supply sanctions by buying from Kazakhstan and China?

Western nations have forbidden their companies from selling some of the most crucial products of a modern economy: semiconductors industrial spare parts (e. g. for planes) industrial equipment ...
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4 votes
0 answers
48 views

What caused Russia's currency to appreciate back to pre-war levels despite sanctions and debt default? [duplicate]

Prior to its invasion of Ukraine on 24 Feb 2022, Russia's currency was trading at around 0.012 USD. Today, the Ruble is back near pre-war levels (currently 0.12 USD): I thought war, sanctions, ...
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What is a "full blocking" sanction on a bank?

In the wake of the Russian invasion of Ukraine, the United States announced a range of sanctions on Russian banks. These include (Source) "full blocking sanctions on VTB Bank, Russia’s second-...
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2 votes
1 answer
73 views

How effective are economic sanctions on Russia?

Things like "banning Russia from SWIFT" sound devastating, but then we find out that actually it is a ban on some (not all) Russian banks. So, do the sanctions imposed by the West and the ...
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5 votes
1 answer
875 views

What are the reasons for Russian Ruble to strengthen in the past few days?

1 USD was about 75 Russian Rubles before the war in Ukraine began. After the sanctions, Russian Ruble quickly declined and 1 USD skyrocketed to 139 Rubles. Now it is back to around 85. What are the ...
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2 votes
2 answers
174 views

(How) does Russia benefit if Gazprombank instead of Gazprom gets to keep the euros?

I know there's an older question here, but Russia has recently clarified (after some pushback from the EU capitals) what it means by gas payments in rubles. As RT explained: “Everything will be fast, ...
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3 votes
2 answers
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Why is Russia demanding oil payments in rubles?

In response to sanctions, Russia is demanding that oil purchases be conducted in rubles to prop up the value of the ruble. Why is this advantageous for Russia to have foreign buyers convert dollars to ...
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0 answers
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Can sanctions spur economic reforms?

Is there any evidence throughout history that economic and financial sanctions helped sped up structural reforms, particularly in countries whose economies were previously dependent on natural ...
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1 vote
0 answers
15 views

Is Bank for International Settlements still providing financial services to Afghanistan?

After the Taliban takeover of Afghanistan in August 2021, most of the major central banks such as the Fed, Bank of England, and Bundesbank froze FX reserves of the Afghan central bank (DAB). As of ...
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2 votes
1 answer
129 views

Can Autarky be prosperous?

In light of the recent economic sanctions on the Russian federation, I would like to know, if it is theoretically possible for a country like Russia, with a high level of natural resources and ...
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0 votes
0 answers
100 views

Viability for Russia to demand oil exports be paid in rubles?

Preface At the time of writing, the ruble is extremely volatile, swinging double digits. A whole confluence of factors are weighing against the ruble. European depositories are pulling the plugs on ...
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1 vote
3 answers
118 views

How do USD sanctions on Russia work?

On the 28th of February 2022, the US Government banned United States persons from engaging in transactions with the Central Bank of the Russian Federation. The motive was quoted as "to prohibit ...
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3 votes
1 answer
296 views

Which sanction against Russia creates the least side effects on Western economies: SWIFT disconnect or denying selling of government bonds?

This NBC article suggests more fragility to sanction Russia by barring its central bank to sell government bonds as opposed to disconnecting it from the SWIFT, where there is virtually an EU + UK + US ...
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6 votes
2 answers
110 views

Alternatives to avoid sanctions

Recently we saw that the EU and Iran devised an instrument called INSTEX to avoid dealing in U.S. dollars and, hence, avoid U.S. sanctions. Similar thing is being planned between India and Russia (...
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2 votes
2 answers
147 views

Do sanctions work?

When countries commit "economic crimes" — i.e., theft of intellectual property, dumping, currency manipulation — are sanctions effective at making them stop? I am specifically looking for examples of ...
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0 votes
2 answers
80 views

Are there internationally published sources of trade sanctions?

How to implement embargoes with respect to a trading company? Let's assume i am a small trading agent which assists and guides small exporters and importers while keeping embargoes and light ...
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4 votes
2 answers
86 views

Why does the EU need a clearing centre to circumvent US sanctions against Iran?

As reported here and elsewhere, the EU is considering the creation of a clearing house to keep trading with Iran despite US sanctions. Why is it not possible for the EU to conduct normal financial ...
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