N°23-115: The Impact of Foreign Sanctions on Firm Performance in Russia

We assess the economic effects of two decades of recent sanctions on Russian firms. We find that foreign sanctions leave energy firms in Russia unaffected but do undermine firm performance in the other (non‐energy) sectors. While firms with connections to Russian oligarchs linked to Putin are unaffected, sanctions do not differentiate in their impact between firms with Russian and foreign origins. Interestingly, Russian firms seem to be prepared for the Crimea event and the Ukraine war. Ultimately, we find that increasing export to China at country‐level helps alleviate the negative impact of sanctions on firm performance in Russia.