This paper looks at the effects of the trade wars that followed 2014 events in Ukraine on Belarus. The estimation of the model predicts the increase in the tarif revenue collected by Belarus. Because of ban on imports, the tari¤ revenue of Russian Federation declines. Being a part of Customs Union, Belarus needs to participate in the tarif revenue redistribution. The need to participate in the tarif revenue redistribution and the decline in the tarif revenue collected by Russian Federation lead to the decrease in the welfare of Belarus. To avoid this decrease, Belarus should argue for the modi…cation of the redistribution schedule.

How do member states determine the Common External Tariff@ (CET) in a Customs Union? While a large theoretical literature studies the incentives faced by governments when negotiating the CET, empirical evidence is so far scant. This paper studies a large panel data set of tariff data from the Eurasian Customs Union and demonstrates the importance of mutual protectionism: member states bargain to expand to their partners the protection of goods that were protected nationally.