The 2014 Russia Shock and Its Effects on Italian Firms and Banks
Journal: National Bureau of Economic Research
Year: 2023

We study how a demand shock in an export market propagates to the exporting country's banking system.Using the dual shocks of sanctions and falling oil prices suffered by Russia in 2014, we investigate the effects on Italian firms and banks more exposed to the Russian market.This event implied a sharp decline in sales for firms with a significant share of sales to Russia, but it did not affect the overall amount of credit available to them.Banks relatively more exposed to Italian exporters to Ru