Sanctions on Russia

The chapter examines the evolution and effectiveness of Western sanctions imposed on Russia following its 2022 full-scale invasion of Ukraine. It places these measures within the broader concept of economic statecraft—the strategic use of economic measures to influence state behavior—and reviews how sanctions have transformed from targeted financial restrictions into a multidimensional regime encompassing energy trade, finance, and technology. While the sanctions coalition achieved unprecedented coordination in its measures toward Russia, their impact has been diluted by deliberate gaps, delayed implementation, and enforcement gaps. Russia&s;s economy initially adapted through high energy revenues, the ability to reshuffle trade relationships, strong buffers, and a competent policy response. While soaring military spending, a favorable external environment, and a tight labor market sustained short-term growth, structural weaknesses, inflation, and fiscal pressures emerged in 2025. The authors argue that sanctions have seriously constrained Russia&s;s capacity to continue its war of aggression against Ukraine but failed to coerce behavioral change. They conclude that future sanctions must feature clearer objectives, a more structured approach to design and implementation, consistent enforcement, and private-sector accountability. Despite mixed results, sanctions remain the least costly alternative to military action and a central instrument of 21st-century geopolitical competition.