The smartest EU sanction on Russia

Daniel Gros

[FLORENCE] As Russian forces continue to shell civilian areas of Ukraine indiscriminately, the question of whether the European Union - or individual member states - should ban gas imports from Russia is becoming increasingly urgent. While the United States has already taken that step, a ban in Europe - which purchased nearly three-quarters of Russia's natural-gas exports last year - would do far more damage to Putin's war effort.

But a ban on Russian gas imports would also carry very severe short-run economic consequences for Europe, to the point that it might not be sustainable. Fortunately, there is another way, which would minimise economic disruption in the EU: the bloc can introduce an import tariff on Russian gas.