Event-Driven Analysis of the Effectiveness of European Economic Sanctions Against Russia (2022–2024)

Abstract

This paper examines the effectiveness of European economic sanctions against Russia from 2022 to 2023, with a focus on the impact of these measures on the Russian oil & gas sector. Prior to the implementation of large-scale sanctions, the European Union was Russia's principal trading partner. Against this backdrop, this study assesses the impact of European restrictions on Russia. Utilizing the event analysis method, renowned for its reliability in assessing the effects of anti-Iranian sanctions and previous sanctions against Russia during 2014-2021, this research analyzes data from the oil & gas sector of the Russian stock market on the Moscow Exchange. Despite significant attention to oil exports from the sanctions imposers, findings indicate a minimal impact on the oil and gas sector. The study aims to shed light on the economic ramifications of these recent sanctions and seeks to contribute to the broader discourse on the efficacy of economic sanctions as a tool of foreign policy.