Journal Article
Dodging Trade Sanctions? Evidence from Military Goods
AEA Papers and Proceedings, 115: 573–77
Authors
Publication Date
DOI
JEL Classification
D74
F13
F14
F51
L64
P26
P33
Related Topics
Geoeconomics
International Trade
Russia
The Russian invasion of Ukraine in 2022 led to unprecedented sanctions aimed at denying Russia access to critical technologies essential for sustaining its war efforts. This paper examines whether trade sanctions targeting military goods were undermined by evasion, specifically through transshipment via Russia-friendly countries. We find that Russia-friendly countries were 20 percentage points more likely to export military goods to Russia relative to neutral countries after the war began, while exports of military goods from Western allies to these countries also increased. Our results show that weak enforcement significantly undermines the effectiveness of sanctions.
