The Effects of Sanctions on Russian Banks in TARGET2 Transactions Data

Constantin Drott, Stefan Goldbach and Volker Nitsch

Publications of Darmstadt Technical University, Institute for Business Studies (BWL) from Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL)

Abstract: This paper examines the effect of financial sanctions at the most disaggregated level possible, individual bank accounts. Using data from the Eurosystem’s real-time gross settlement system TARGET2, we provide empirical evidence that sanctions imposed by the European Union on Russian banks following Russia’s aggression against Ukraine in 2014 and 2022 have sizably reduced financial transactions with sanctioned Russian bank accounts, both along the extensive and intensive margins. Among the various sanction measures taken, exclusion from SWIFT, a global provider of secure financial messaging services, turns out to have the largest effects.

Date: 2024-01-18
New Economics Papers: this item is included in nep-ban, nep-cis, nep-inv, nep-pay and nep-tra
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Published in Darmstadt Discussion Papers in Economics 245 (2024-01-18)

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Related works:
Journal Article: The effects of sanctions on Russian banks in TARGET2 transactions data (2024)
Working Paper: The effects of sanctions on Russian banks in TARGET2 transactions data (2024)
Working Paper: The effects of sanctions on Russian banks in TARGET2 transactions data (2024)
Working Paper: The effects of sanctions on Russian banks in TARGET2 transactions data (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:dar:wpaper:142468

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