Eurasian re-exports offer Russia only mild relief

Significance

Sanctions have changed trade and investment patterns in EEU members, creating opportunities as well as secondary sanctions risks. Kazakhstan in particular has not signed up to Russian efforts to defy sanctions.

Impacts

• Enhanced due diligence by Western companies will be required to avoid sanctions violations in EEU countries outside Russia.
• Increased Russia trade with EEU countries will boost transnational use of the ruble.
• Business relocations and migration from Russia and Belarus may increase foreign investment in other EEU states, at least in the short run.