Cutting Putin’s Energy Rent: 'Smart Sanctioning' Russian Oil and Gas

Ricardo Hausmann, Agata Łoskot-Strachota, Axel Ockenfels, Ulrich Schetter, Simone Tagliapietra, Guntram Wolff and Georg Zachmann

No 186, Growth Lab Working Papers from Harvard's Growth Lab

Abstract: Following the Russian aggression against Ukraine, major sanctions have been imposed by Western countries, most notably with the aim of limiting Russia’s access to hard international currency. However, Russia remains the world’s first exporter of oil and gas, and at current energy prices this provides large hard currency revenues. As the war continues, European governments are under increased pressure to scale-up their energy sanctions, following measures taken by the United States, the United Kingdom, Canada and Australia. This piece argues that given the inelasticity of Russia’s oil and gas supply, for Europe the most efficient way to sanction Russian energy would not be an embargo, but the introduction of an import tariff that can be used flexibly to control the degree of economic pressure on Russia.

Keywords: Ukraine War; Russia (search for similar items in EconPapers)
Date: 2022-04
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Working Paper: Cutting Putin’s energy rent- ‘smart sanctioning’ Russian oil and gas (2022)
Working Paper: Cutting Putin’s Energy Rent: 'Smart Sanctioning' Russian Oil and Gas (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:glh:wpfacu:186

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