European Union Sanctions Impact on The Sector Stock Prices – The Ukrainian War Effect?

The aim of this paper is to analyze the current impact of the implementation of the European Union sanctions related to the Ukrainian War on the abnormal rates of return on the stock prices of companies listed on the stock exchanges. It was hypothesized that the implementation of the European Union sanctions related to the Ukrainian War is causing the varied abnormal rates of return on the stock prices of companies listed on the stock exchanges, taking into consideration the type of sector and the geographical proximity to the military conflict. The analysis used panel data event studies prepared using the daily rates of return on the stock prices of companies listed on the stock exchanges. Data were collected from the Refinitiv Eikon database. The models included divisions according to the type of sector and the geographical proximity to the military conflict. The results show that the reactions of subsectors varied. The significant impact was in the vicinity of Russia and Ukraine.