Due to the continuous globalisation of economic processes and increasing interna-tional linkages of many companies, the role of political risk has grown in im-portance in recent years. Governmental actions such as sanctions are often criti-cised for ignoring risks and representing challenges for countries, industries and companies operating internationally. In response to the Ukrainian crisis and an-nexation of Crimea by the Russian Federation in 2014, EU governments imposed sanctions on Russian individuals and companies. Later on the scope of sanctions increased and as a counter-reaction the Russian government banned the total food import from the European Union in August 2014. Many experts expressed their view, that these restrictive measures may cause strong impacts on the econ-omies of the participating states. The aim of this work is the identification of eco-nomic consequences in the target county (Russia) as well as in the home county (Austria) - due to the political events. In particular, this work discusses only the economic aspects of the sanctions, which have been ordered by the European Union in 2014 against the Russian Federation due to the Ukrainian Crisis.