From Russia with love: International risk-sharing, sanctions, and firm investments

Kiet Tuan Duong; Luu Duc Toan  Huynh; Anh Dang Bao Phan; Nam T. Vu

doi:10.1016/j.econlet.2024.112005

From Russia with love: International risk-sharing, sanctions, and firm investments

Kiet Tuan Duong, Luu Duc Toan Huynh, Anh Dang Bao Phan, Nam T. Vu^*

^*Corresponding author for this work

The York Management School

Research output: Contribution to journal › Article › peer-review

Abstract

We propose a novel explanation for why sanctions on Russian firms might not work as intended: these firms’ ability to diversify sanction risks via partner countries friendly with Russia. Using indirect links with partner firms as a plausibly exogenous proxy for this risk-sharing channel, we show that exposed Russian firms were able to leverage these links to alleviate the negative impacts of sanctions in 2014.

Original language	English
Article number	112005
Number of pages	5
Journal	Economics Letters
Volume	244
Early online date	10 Oct 2024
DOIs	https://doi.org/10.1016/j.econlet.2024.112005
Publication status	E-pub ahead of print - 10 Oct 2024

Bibliographical note

Keywords

International risk-sharing
Sanction
Russia
Firm-level

Access to Document

10.1016/j.econlet.2024.112005Licence: CC BY

1-s2.0-S0165176524004890-main
© 2024 The Authors. Published by Elsevier B.V.
Final published version, 860 KBLicence: CC BY

Cite this

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