The effects of sanctions on Russian banks in TARGET2 transactions data

Constantin Drott, Stefan Goldbach and Volker Nitsch

No 38/2022, Discussion Papers from Deutsche Bundesbank

Abstract: This short 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 the country's military interventions in Ukraine in 2014 and 2022 have sizably reduced financial transactions with sanctioned Russian bank accounts. Among the various sanction measures taken, exclusion from SWIFT, a global provider of secure financial messaging services, turns out to have the largest effects.

Keywords: financial flows; transactions; restrictions (search for similar items in EconPapers)
JEL-codes: F38 F51 G28 (search for similar items in EconPapers)
Date: 2022
New Economics Papers: this item is included in nep-ban, nep-cis, nep-mon and nep-tra
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Citations: View citations in EconPapers (4)

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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)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdps:382022

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