Sanctions against Russia, their effectiveness and impacts on Finland

Abstract

<p>Russia’s war of aggression in Ukraine has been widely condemned. The EU, the UK and the USA, together<br>with their allies, have imposed unprecedentedly extensive and well-coordinated sanctions on Russia.<br>The sanctions target the key sectors of the Russian economy, undermining Russia’s technological and<br>industrial development, and isolating Russia from the global economy and international financial<br>market. The economic situation in Russia is aggravated by other consequences of the war, such as the<br>large-scale withdrawal of Western companies, and the accelerated brain drain. However, due to Russia’s<br>integration into world markets and the EU’s dependence on Russian energy, for instance, the impacts of<br>the sanctions are also felt on the international economy and on countries that imposed them, including<br>Finland. This study reviews the main sanctions of the EU, the UK, and the USA by sector, and examines<br>their effectiveness with regard to their target, Russia. In addition, the impacts of the war in Ukraine and<br>the sanctions on Finland’s foreign trade and Finnish companies are assessed.<br></p>