Western countries imposed several sanctions on Russia after its illegal annexation of Crimea in 2014. These sanctions have increased in scope and intensity after Russia launched a full-scale invasion of Ukraine in February 2022. The current set of sanctions includes a price cap on Russian oil; tariffs and trade bans; asset freezes and transaction bans on individuals, firms, and institutions; and other financial restrictions. Despite these efforts, Russia continues to rake in hundreds of billions of dollars in export revenues, which help fund the war, and is continuing to use Western components in manufacturing weapons with which it attacks Ukraine. Some people have interpreted these patterns as evidence that sanctions are a fundamentally ineffective tool in combating aggression.
However, the real problem is that many of the current sanctions are weak, poorly coordinated, poorly enforced, or some combination of these three factors. Economists for Ukraine has consolidated and simplified information about sanctions regimes by their major targets. We draw on data from the Petersen Institute’s sanctions timeline and individual governments to identify where sanctions have already been implemented. We also include recommendations from the Yermak-McFaul group on closing the gaps in sanctions and their enforcement.
| Sanctions area | What has been done | What could be done | Why it's important |
|---|---|---|---|
| Defense industry and technology | • The US and EU add entities supporting Russia's military or defense industry to lists subject to export blocks (i.e., military end-users). • G7 members ban the export of a range of goods that carry a risk of military usage, including prohibited items used in Russian military systems and other items Ukraine has found on the battlefield. • G7 members ban the export of technology such as semiconductors, computers, electronic circuits and other components to Russia, as well as quantum computing components and other advanced technologies. | • The G7 should tighten technology bans on Russian access to microelectronics, Computer Numerical Control (CNC) machines, software, and all other items found to be used by Russia on the battlefield by investigating and fining violators, harmonizing controls across jurisdictions, and consistently sanctioning third-country intermediaries. • Democratic countries should re-establish the Coordinating Committee for Multilateral Export Controls (CoCom), based at the OECD, to limit the transfer of military and dual-use technologies to Russia. • The US should follow the EU's lead and designate Russia as a state-sponsor of terrorism, which would trigger a ban on all arms-related exports and sales, strengthen export controls over dual-use items, and lead to secondary sanctions on third parties transacting with Russia. | Russia relies on foreign components for its military production in order to wage war on Ukraine, particularly microchips and other technology. In the first ten months of 2023, Russia imported $22.23 billion worth of items critical for its military industry. 95% of all parts found in Russian weapons on the battlefield were sourced from sanction coalition countries, with 72% from U.S.-based companies (Bilousova et al.). |
| UAVs (drones) | • The UK and EU ban the export of goods used in the production of UAVs, such as drone engines, to Russia. • The US restricts the export of foreign-made components to and adds to the blocked Entity List those from Iran and other third countries supplying drones to Russia. | • More aggressive enforcement actions should be taken against sanctions violations by third countries such as Iran to deter evasion and break up networks of corrupt and Russian-related intermediaries in relation to drone production. | Russia has used thousands of drones to attack infrastructure and other targets in Ukraine (Reuters). Around 70% of the components retrieved from Iranian and Russian-made UAVs originated from U.S.-based companies (KSE). Russia imported $7.2 billion worth of components associated with UAVs from January to May 2023 alone—more than the corresponding period in 2022. |
| Asset freezes | • The G7 plans to use the interest from at least $316 billion of frozen Russian Central Bank assets to repay a $50 billion loan to Ukraine. | • The G7 should directly confiscate Russian assets (not just the interest) and transfer them to Ukraine. This could involve transferring assets to escrow accounts with a central bank, or confiscating assets via new or existing legislation such as the US REPO Act. • Western countries should be transparent about whether they are holding frozen Russian assets and the size of these assets. | Russia has inflicted hundreds of billions of dollars in damage on Ukraine's infrastructure and economy (KSE Institute). Frozen Russian assets should be used to finance Ukraine's reconstruction and to pay reparations for Russia's unprovoked war of aggression. |
| Oil price cap | • The G7 agreed to implement a price cap on Russian crude oil and petroleum products. It is prohibited to provide maritime transport, technical assistance, brokering services, or financing for Russian products being sold in third countries below the price cap. • The price cap is currently set at $60 per barrel on Russian-origin seaborne crude oil, $45 per barrel for lower value petroleum products like fuel oil, and $100 per barrel for higher value products like gasoline and diesel. | • The US should significantly step up its campaign to impose asset freezes (“blocking orders”) on Russian shadow fleet tankers violating the price cap, and progressively tighten General License 8, the broad exemption that allows Western trading firms to trade Russian energy. • The EU should enforce the price cap by requiring all Russian ships sailing through the Baltic to maintain safety standards and secure adequate insurance against spills, and amending price cap rules to require that only traders with significant business exposure to coalition countries would be permitted to charter mainstream vessels and provide price attestations. • Once credible compliance with the price cap is achieved, price caps on all products should be lowered by $10/barrel. | As Russia's largest export (OEC), oil is a crucial source of revenue funding its war against Ukraine. Russia has spent around $10 billion to assemble a "shadow fleet" of 300 aging oil tankers to evade the price cap. Since the price cap was implemented, oil prices have reflected very low levels of compliance (Yermak-McFaul Group). |
| Crude and refined oil (petroleum) | • The US, UK, and Canada banned imports of Russian oil. • The EU banned the import of Russian crude oil and certain petroleum products, with exceptions for member states with a dependence on it. It also allows oil from third countries to be transported through Russia to the EU via the Druzhba pipeline. • G7 members controlled or banned exports destined for the Russian oil refining industry, such as equipment and technology. | • The EU should phase out exceptions for the import of Russian petroleum, while Japan should also impose a full ban. | Oil is Russia's largest source of export revenue. In 2022, Russia exported $200.4 billion of crude and refined petroleum (OEC). In 2023, oil and gas exports generated $100 billion to cover over 30% of the state budget (Atlantic Council), funding Russia's war on Ukraine. |
| Petroleum gas | • Germany suspended certification of the Nord Stream 2 Russian natural gas pipeline. • The US and UK banned imports of Russian LNG. • The EU introduced a ban on Russian liquefied propane (LPG) with a 12-month transitional period after December 2023. | • All G7 members, particularly the EU, Canada, and Japan, should ban Russian LNG and LPG imports. | In 2022, Russia exported $71.5 billion in petroleum gas (OEC). In 2023, oil and gas exports generated $100 billion to cover over 30% of the state budget (Atlantic Council), funding Russia's war on Ukraine. |
| Metals (iron, aluminum, copper, nickel, and others) | • The EU, UK, and Canada banned imports of Russian iron and steel. • Canada, the UK, and the US banned imports of Russian aluminum, while the EU only banned aluminum products such as wires, foil, tubes, and pipes. • The UK and US banned imports of Russian copper and nickel, while the EU only banned copper products such as wires, tubes, and pipes. | • Full import bans on Russian iron and steel should be implemented by other G7 members, particularly the US and Japan. • All G7 members, particularly the EU and Japan, should impose full import bans on Russian aluminum, copper, nickel, and other metals which generate significant revenue. | In 2022, Russia exported $46.8 billion worth of metal and metal products (OEC). These exports are a source of revenue funding Russia's state budget and its war on Ukraine. |
| Securities and debt | • G7 members prohibit dealing in Russian-issued securities or sovereign debt. The US extends this prohibition to the secondary market for bond issues. It also prohibits transactions and dealing in new debt of longer than 14 days maturity and new equity with major Russian firms. • The EU prohibits the holding of accounts of Russian clients by the EU Central Securities Depositories, as well as the sale of euro-denominated securities to Russian or Belarusian clients. | • All G7 members, in particular the US, UK, and Japan, should prohibit the sale of their securities to Russian or Belarusian clients. | As of January 2023, foreign owners accounted for about $22.5 billion of Russian local currency bonds and $16 billion of Russian Eurobonds (Cleary Gottlieb). These bonds fund the state budget and Russia's war on Ukraine. |
| Banking and transactions | • All G7 members ban transactions with and freeze the assets of numerous Russian and Belarusian financial institutions, including the Central Bank of Russia, Sberbank, Bank Rossiya, the Credit Bank of Moscow, Gazprombank, and others. • The EU and G7 take joint action to remove numerous Russian and Belarusian banks from the SWIFT financial messaging system, including Sberbank, the Credit Bank of Moscow, Okritie, VEB, PSB, Novikombank, Sovcombank, and others. • The EU and UK impose bank deposit limits for Russians. | • G7 members should apply full blocking sectoral sanctions on all Russian banks and key financial institutions, starting with those providing preferential mortgages to Russian armed forces personnel and employees of military industry entities, and other government financing programs supporting Russia’s technology, defense, or manufacturing sector. • The G7 should sanction banks and financial institutions in “friendly” countries facilitating Russian trade, especially in Central Asia, the Caucasus, the UAE, China, and Turkey. • The G7 should require all Western banks still operating in Russia to exit by forcing them to pay penalties commensurate to the taxes they pay to Russia, similar to how the US penalizes companies paying bribes abroad. | In 2023, Russian banks made record profits of $36.8 billion (Kyiv Independent), while Western banks operating in Russia paid more than $850 million in taxes (Financial Times). The banking sector is a source of revenue for the state budget, funding Russia's war on Ukraine. |
| Coal | • The US, UK, EU, and Japan implemented bans on Russian coal. | • Other states and G7 members such as Canada should implement bans on Russian coal. | In 2022, Russia exported $36.5 billion worth of coal (OEC). These exports are a source of revenue funding Russia's state budget and its war on Ukraine. |
| Fertilizers and chemicals | • Western sanctions exempt Russian fertilizer exports. • The US banned the import of Russian uranium. | • G7 members, particularly the EU, UK, and Japan, should implement full embargoes on Russian uranium and its derivatives. | In 2022, Russia exported $29.9 billion in chemical products, including $18.65 billion in fertilizers and $2.12 billion in radioactive chemicals like uranium (OEC). These exports are a source of revenue funding Russia's state budget and its war on Ukraine. |
| Precious metals (gold, platinum, silver, diamonds, and others) | • All members of the G7 implemented bans on the import of Russian gold, while the UK extended this ban to gold processed in a third country that incorporates gold originating or exported from Russia. • G7 members implemented bans on non-industrial diamonds from Russia. The EU also includes diamonds processed in third countries which originated in Russia and implements traceability mechanisms. | • The rest of the G7 should extend bans to gold from third countries which incorporate gold originating from Russia and enforce traceability mechanisms (as it can be melted down and recast to disguise its origins). • The US and other G7 members should extend import bans to Russian diamonds processed in third countries, implementing traceability mechanisms. • Punitive sanctions or embargoes should be placed on Russian exports of platinum, palladium, titanium, and vanadium. | In 2022, Russia exported $27.6 billion worth of precious metals (OEC). These exports are a source of revenue funding Russia's state budget and its war on Ukraine. |
| Services | • G7 members banned the export of various consulting, accounting, and public relations services, as well as architectural, construction, or engineering services to Russia. • The EU banned the provision of legal advisory services to Russia, while the UK limits its ban to large Russian businesses and wealthy individuals. • G7 members block Russians from accessing wealth management, trust, and other financial services. The UK extends the restrictions on access to financial services to Belarus. | • The US should re-introduce and pass the ENABLERS Act, requiring lawyers, accountants, and other professionals to conduct basic due diligence on their clients’ identities and report suspicious activity to authorities • The UK and EU should impose robust suspicious activity reporting regimes. • G7 members should introduce a comprehensive ban on export services for the oil and gas industries. | In 2020, Russia imported $15.3 billion worth of miscellaneous business, professional, and technical services, $6.6 billion in construction services, and $1.32 billion in financial services (OEC). These services support critical Russian industries and enable its war on Ukraine. |
| Transportation (cars, trucks, and other vehicles) | • G7 members prohibit the export of vehicles to Russia such as cars, trucks, dump trucks, and bulldozers under bans covering both luxury and dual-use goods. | In 2022, Russia imported over $19 billion worth of cars, trucks, and other vehicles (OEC), some of which can be used by the military in its war on Ukraine. | |
| Loan and credit bans | • The EU and UK prohibit making any new loans or credit to any person or entity related to Russia and its government or the Central Bank of Russia, and the EU prohibits granting any loan or credit or to an entity in the so-called DNR or LNR. • The G7 agrees to ensure Russia cannot obtain financing from the leading multilateral financial institutions, such as the International Monetary Fund and the World Bank. The US banned transactions with Russia involving IMF reserve assets. • The export credit agencies of the US, UK, and Canada withdrew any new export finance support for Russia and Belarus. | • All G7 members, in particular the US, should prohibit making new loans or credit to Russian individuals or entities. • All G7 members, in particular the US and UK, should prohibit making new loans or credit to entities in any occupied region of Ukraine. | International or Western loans could be used to finance Russia's war on Ukraine. Russia received $17 billion in IMF assets known as Special Drawing Rights (SDRs) in 2021, but faces significant hurdles to use them (Reuters). |
| Other goods | • The US, EU, and Canada ban imports of Russian fish and seafood. • G7 members have banned various Russian exports such as wood, wood products, cement, asphalt, plastics, and synthetic rubber, while the UK expanded these bans to Belarus. | • G7 members should impose coordinated import bans on Russian revenue-generating goods, such as wood, seafood, plastic, rubber, and cement, and extend them to Belarus. • The US and Japan should impose a full ban on Russian wood and wood products, while the UK and Japan should impose a full ban on Russian seafood. | In 2022, Russia exported $12.75 billion worth of wood and wood products, $7.85 billion of seafood, and $6.68 billion of plastic and rubber (OEC). These exports are a source of revenue funding Russia's state budget and its war on Ukraine. |
| Agricultural goods (cereal grains and others) | • Western sanctions do not ban the import of Russian grain or wheat, although the EU imposes import tariffs on agricultural goods. | • G7 members should impose a ban or at least a punitive tariff (like the EU) on Russian wheat. | In 2022, Russia exported $9.97 billion worth of agricultural products such as wheat, corn, and other cereals, and about $4.5 billion worth of seed oils (OEC). These exports are a source of revenue funding Russia's state budget and its war on Ukraine. |
| Chemical and biological weapons | • The US, EU, and Japan ban exports of materials and items, such as certain chemicals, that are useful for chemical and biological weapons production to Russia. The UK has banned all dual-use goods. | • G7 members should impose export bans on coordinated lists of chemicals and other items useful for chemical or biological weapons production. | Russia has used chemical weapons such as choking agents in its war on Ukraine, in violation of international law. Ukraine has reported 1,400 instances of chemical weapons use since the full-scale invasion began (Atlantic Council). |
| Luxury goods | • All G7 members ban exports of luxury goods to Russia, and most also ban their export to Belarus. | • Japan should extend bans on the export of luxury goods to Belarus. | Billions of dollars worth of luxury goods such as cars and personal technology have been imported into Russia since sanctions were imposed (New York Times), benefitting members of the Russian elite who enable its war on Ukraine. |
| Virtual currency | • The EU prohibits Russian deposits to crypto-wallets and bans Russian nationals from owning or controlling entities providing crypto-asset wallet, account or custody services to Russians. • The US imposes full blocking sanctions on Garantex, a virtual currency exchange, the Russian darknet market Hydra, as well as Bitriver and other companies in Russia’s virtual currency mining industry. | • Other G7 members such as the US, UK, and Japan should prohibit Russian deposits to crypto-wallets. • G7 members besides the US should impose blocking sanctions on companies in Russia's virtual currency mining industry. | Russia is the third-largest country for bitcoin mining. Russia may utilize cryptocurrencies to evade Western sanctions, make up for lost revenues, and finance its war on Ukraine (CSIS). |
| Import tariffs | • The G7 announced its plans to increase import tariffs to eliminate Russia's World Trade Organization (WTO) membership benefits and deny the country its Most Favored Nation (MFN) trade status. • The US and UK imposed 35% or higher tariff rates on a variety of Russian and Belarusian goods such as liquor, diamonds, rubber, platinum, and palladium, while the US doubled these to 70% for metals and most metal products. Canada imposed 35% or higher tariffs on virtually all goods imported from Russia or Belarus. • The EU imposed tariffs of €95/ton on imports of Russian cereals and 50% on oilseeds. | • All G7 members, including the EU and Japan, could deny Russia and Belarus their MFN status by imposing tariffs of 35% or higher on all imports from those countries. • Existing EU tariffs on agricultural goods from Russia and Belarus should be extended to all Russian exports, rather than sanctioning each kind of commodity separately | In 2023, Russia exported $425 billion worth of goods, including $85 billion to Europe (Reuters). Tariffs reduce Russian export revenues, which fund its war on Ukraine. |
| Investment bans | • The US, UK and Japan imposed outright bans on new investment in Russia, while the EU banned new investment in the Russian mining and energy sectors. • The UK banned Russian state-owned and key strategic private companies from raising finance on the UK financial markets, while the EU prohibits the listing and provision of services in relation to shares of Russian state-owned entities on EU trading venues. • The US banned any new investment in the so-called DNR or LNR regions of Ukraine by a United States person, while the EU prohibits investment in real estate, creating joint ventures in, acquiring ownership, shares, or securities or providing investment services to firms in these regions. | • G7 members, particularly the EU, should ban all new investment in Russia, not just in certain sectors. • All G7 members should ban new investment in any occupied region of Ukraine. | Foreign investment in key Russian sectors such as energy and mining can raise revenues, enabling Russia's war on Ukraine. |
| Entities in the energy sector | • Over three thousand Russian, Belarusian, and third party entities (such as companies and other institutions) have been sanctioned so far by the US, UK, EU, Switzerland, Canada, Australia, and Japan. These sanctions typically entail asset freezes and transaction bans. | • G7 members should apply comprehensive sanctions against all Russian firms in the energy sector, including Gazprom, Rosneft, Surgut, Tatneft, Zarubezhneft, Lukoil, Transneft, Sibur, Roshydro, and especially Rosatom. | Firms in the Russian energy sector provide the government with hundreds of billions of dollars in tax revenues per year (Atlantic Council), funding its war on Ukraine. |
| Entities in the metals sector | • Over three thousand Russian, Belarusian, and third party entities (such as companies and other institutions) have been sanctioned so far by the US, UK, EU, Switzerland, Canada, Australia, and Japan. These sanctions typically entail asset freezes and transaction bans. | • G7 members should impose sanctions on all Russian firms in the metals sector who are helping to arm Russia, including Rusal, Severstal, Evraz, NorNickel, Metalloinvest, NLMK, and MMK, building on recent sanctions on Mechel. | Firms in the Russian metals sector provide the government with billions of dollars in tax revenues each year, funding its war on Ukraine. These metals also support the manufacturing of weapons and other items used in Russia's war on Ukraine. |
| Individual sanctions | • More than three thousand Russian, Belarusian, and third-party individuals have been sanctioned by the US, UK, EU, Switzerland, Canada, Australia, and Japan so far. Individual sanctions typically include asset freezes, transaction bans, and travel bans or visa restrictions. • Individual sanctions have been applied to Russian, Belarusian, and third country politicians, oligarchs, soldiers, businessmen, and those otherwise assisting the Russian military, defense industry, or occupation of Ukrainian territory. | • The G7 should expand lists of individual sanctions to all senior officials in the Russian government, armed forces, and senior executives at state-owned enterprises and defense companies, as well as their immediate family members, propagandists, and proxies; many key oligarchs and their families remain unsanctioned. • The US, the EU, the UK, Canada, Japan, Australia, New Zealand, and Switzerland should synchronize their lists of individual sanctions and exchange information on the nature and rationale of their sanctions to avoid Russian oligarchs winning lawsuits (especially in the EU) due to weak documentation. • These countries should develop a mechanism, coordinated with the government of Ukraine, for an individual to be removed from sanctions lists if they (i) publicly and credibly denounce Putin’s war and (ii) cease actions providing sources of revenue to the Russian government. | Russian and third-country politicians, oligarchs, military leaders, soldiers, businessmen, and collaborators have enabled and supported the invasion of Ukraine. Sanctioned individuals are also responsible for the occupation of Ukrainian territory, war crimes, and other violations of international law. |
| Transport bans | • The EU, UK, and US prohibit Russian aircraft from entering their airspace or landing on their territory. • Canada prohibits Russian ships from docking at its ports, while the EU blocks access to its ports by Russian-registered vessels with several exceptions. • The EU bans any Russian and Belarusian road transport from transporting goods by road within the EU, including in transit. | • Japan and other states should block Russian aircraft from entering its airspace or landing on its territory. | Transportation bans make it more difficult for Russia to move goods which provide revenue for its war on Ukraine. Aviation bans also prevent the Russian elite from continuing business as usual while enabling the war on Ukraine. |
| Full import and export bans | • G7 members prohibit exports to and imports from the Russian-occupied regions of Ukraine. | • All states, including G7 members such as Japan, should prohibit exports to and imports from all occupied regions of Ukraine, not just the so-called Donetsk and Luhansk People's Republics. | Imports and exports to these regions of Ukraine would enable continued Russian occupation. |
Key sources
Bown, Chad P. “Russia’s War on Ukraine: A Sanctions Timeline.” Peterson Institute for International Economics, 31 Dec. 2023, http://www.piie.com/blogs/realtime-economics/2022/russias-war-ukraine-sanctions-timeline.
International Working Group on Russian Sanctions. “Action Plan 3.0: Strengthening Sanctions Against the Russian Federation.” Freeman Spogli Institute for International Studies, Working Group Paper no. 19, 15 May 2024, https://fsi9-prod.s3.us-west-1.amazonaws.com/s3fs-public/2024-05/actionplan_3.0_5-14-2024_final3_update.pdf.
