THE IMPACT OF EUROPEAN UNION SANCTIONS AGAINST RUSSIA ON EU EXPORT PERFORMANCE

Abstract

Growing geopolitical tensions and the increasing use of sanctions as instruments of foreign policy in the 21st century highlight the relevance of this study. Research problem: The impact of European Union sanctions on Russia on the exports of EU member states, considering their economic dependence on the Russian market. Research objective: To assess the impact of EU sanctions on exports, considering the degree of economic dependence on Russia. Research methods: Analysis of scientific literature and panel data regression analysis, using the First-Differences method. The results indicate that sanctions imposed after the 2022 war in Ukraine reduced EU exports to Russia more significantly than those introduced after 2014. Additionally, greater geographical distance and higher GDP contributed to greater export stability. Paradoxically, countries that are more economically dependent on the Russian market experienced a milder decline in exports.