Financial sanctions against Russia: the range of application

Abstract

EU financial restrictions adversely affect macroeconomic environment for financial and nonfinancial enterprises in Russia and Europe, generating both obvious and hidden economic risks. They are applied not only to the state-owned enterprises directly included in the sanctions list, but to their groups of companies as well. The article identifies the methodological differences in the interpretation of the concept of «group of enterprises» that enhance uncertainties and may pose hidden risks in relations between Russian and European companies under fi nancial sanctions. Compared with the European financial sanctions U.S. sanctions are of a broader nature. Due to the status of the dollar as the key currency in payment operations and monetary transactions in the major commodity markets, the threat of restrictions of transactions in dollars affects all foreign partners.