From Russia with love: International risk-sharing, sanctions, and firm investments
研究发现，俄罗斯企业通过与友好国家的合作伙伴建立间接联系来分担制裁风险，从而在2014年制裁中通过增加投资和固定资产缓解了负面影响。
We propose a novel explanation for why sanctions on Russian firms might not work as intended: these firms’ ability to diversify sanction risks via partner countries friendly with Russia. Using indirect links with partner firms as a plausibly exogenous proxy for this risk-sharing channel, we show that exposed Russian firms were able to leverage these links to alleviate the negative impacts of sanctions in 2014. • Maintaining links with firms in friendly countries helped Russian firms diversify sanction risks. • Russian firms leveraged these links to alleviate the negative impacts of sanctions in 2014. • These firms did so through higher investments and an increase in tangible assets. • Results highlight the importance of accounting for the risk-sharing channel of sanctions.