Assessing the impact of sanctions on russian companies performance

Abstract

The paper presents the estimation of sanctions influence on the results of domestic companies on the basis of spillover effects. It is shown that the strength of sanctions influence is mainly determined by the processing chain in terms of industry foreign trade relations structure. During the whole period under analysis (from 2005 to 2012) the companies’ earnings were influenced mostly by German investment (import, export and horizontal country spillovers are significant). Investment from China also affected national companies during the crisis of 2008-2009. Import-driven (productive) industries suffer from sanction regime that is confirmed by the significance of import and export spillover of FDI from the countries, which introduced the sanctions.