Is Russia Getting Paid for its Exports? New Evidence on the Impact of Economic Sanctions
Abstract
Since the beginning of the conflict, Russia has accumulated an unprecedented amount of trade credits against the rest of the world. We argue that this is linked to the effect of economic sanctions, as restriction to payment networks limit Russia’s exporters ability to receive foreign exchange payments for their exports. This previously undocumented effect of sanctions may help explain (within the context of other sanctions and economic developments) the recent bouts of volatility in the ruble exchange rate.
JEL Classification: F31, F32, F34, F51
Keywords
Economic Sanctions, financial sanctions, trade credits, international payments, foreign exchange liquidity, balance of payments, ruble volatility, geoeconomics, Russia, Ukraine
Author Biography
Michele Savini Zangrandi
Michele Savini Zangrandi is an economist in the Emerging Markets and World Trade Division of the International Relations and Economics Directorate of the Bank of Italy (Banca d'Italia).
Emidio Cocozza
Emidio Cocozza is Senior Economist in the Directorate General for Economics, Statistics and Research of the Bank of Italy.
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