Full report
Energy Sanctions and the Global Economy: Mandated vs Unilateral Sanctions
External Publications by Christof Rühl • May 02, 2022
External Publications by Christof Rühl • May 02, 2022
Abstract
The world is witnessing an unprecedented episode of ‘economic warfare’, with more than 30% of global GDP (the G7’s share) pitched against 11% of global energy production (Russia’s share). This paper analyzes oil sanctions against Russia. It shows that the risk of tighter sanctions backfiring, and harming the economies of the sanctioning countries, is manageable. In terms of sanction design, sanctions and embargo announcements have so far been decentralized and voluntary. In previous episodes, sanctions have been enforced, and breaching them was punished. The paper asks whether the unilateral or the mandated model will be more successful in maximizing damage to Russia’s energy revenues, while minimizing economic damage to the sanctioning alliance. Given the scale of Russia’s supplies, a gradual approach is called for. The optimal strategy uses unilateral sanction picking as long as Russian energy exports are large enough to pose a systemic threat; and sanction enforcement thereafter.
Last month, US President Joe Biden signed into law new sanctions aimed at reducing the flow of Iranian oil to China, which purchases about 90 percent of Iran’s...
Three CGEP scholars weigh in on the Biden Administration’s recent decision to increase tariffs on imports from China in strategic sectors vital to US economic interests and national...
The idea of a global electricity market has always been a bit of a misnomer. Fuels such as gas, oil, coal typically travel around the world to fuel...
Full report
External Publications by Christof Rühl • May 02, 2022