The Collateral Damage of Russia's Counter-Sanctions for the EAEU

Abstract

The crisis in Ukraine stunted the institutional development of the Eurasian Economic Union (EAEU). Having lost Ukraine as a potential member, the EAEU got caught in the tensions between Russia and the West. Moscow's retaliatory measures against Western sanctions have backfired against the Union and have undermined its fundamental objective - the creation of free trade. Russia's uncoordinated sanctions caused collateral damage and unleashed unintended consequences on its fellow members. Going beyond the economic realm, the unilateral measures have hampered the Union's further integration. Given the current stalemate on a common sanctions policy, stricter customs control remains the only viable option in the long-term.