Europe's Response: Impact of Sanctions on Russia

Abstract

This research delves deeply into the intricate dynamics of economic sanctions levied by Western nations against Russia, investigating their wide-ranging implications. Employing a blend of quantitative analysis and hypothesis testing, the study unravels a notable insight: these sanctions carry a more substantial impact on the economies of the sanctioning nations themselves than on Russia. The study introduces the "Mary-Jeanne" theory, developed by Professors Jeanne Kaspard Kamel and Richard Hanna Beainy from Holy Spirit University. This theory asserts that the inefficacy of the sanctions on Russia, and their subsequent repercussions on Europe, emanate from the targeting of essential raw materials, particularly oil and gas. The research recommends an alternative approach to sanctions, advocating for the utilization of Russian gas at a moderated price cap, rather than a complete embargo on the commodity as currently enforced. This strategic shift would seek to address the present situation, wherein Russia encounters relatively minor losses due to the low raw material value, while Western industrialized nations grapple with substantial declines in their economies due to the high finished goods' value.