Effects of the EU-Russia Economic Sanctions on Value Added and Employment in Austria and the EU

After a longer period of growth economic trade between the EU and the Russian Federation declined significantly since 2014. Several intertwinded factors are responsible for that development: Besides decreasing oil prices, rising public deficits and a massive devaluation of the Russian Rubel, economic sanctions of the EU against Russia and the counter-sanctions by Russia may have contributed to declining EU exports to Russia. This study isolates the effects of the economic sanctions on trade flows between the EU and Russia. Furthermore, the resulting changes in exports due to the sanctions are fed into an econometric input-output model to estimate the wider macroeconomic consequences for the economies of Austria and the other EU countries.