News

Explore our expert insights and analysis in leading energy and climate news stories.

Announcements

Energy Explained

Get the latest as our experts share their insights on global energy policy.

Featured

Podcasts

Hear in-depth conversations with the world’s top energy and climate leaders from government, business, academia, and civil society.

Featured

Events

Find out more about our upcoming and past events.

Featured
Energy Markets

Energy Sanctions and the Global Economy: Mandated vs Unilateral Sanctions

External Publications by Christof Rühl • May 02, 2022

Read the Paper

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.

Our Work

Relevant
Publications

See All Work

Full report

Energy Markets

Energy Sanctions and the Global Economy: Mandated vs Unilateral Sanctions

External Publications by Christof Rühl • May 02, 2022

Table of Contents
Back to Top

Sign Up Today

Get the latest news and research on energy & climate policy.