Externalities of Sanctions Impact on Russian Economy

Abstract

The work reveals the economic motives for decision-making by the leading world powers and the features of the development of the Russian national economy in the context of measures taken by the Government of the country in the conditions of a changing geopolitical reality. The emphasis is made on the need to manage the risks of foreign economic activity after the introduction of anti-Russian sanctions by unfriendly countries with developed economies. The degree of dependence of the Russian Federation on high-tech goods, components, software and at the same time low diversification of production for the main export items has been revealed. Promising markets for export goods and potential importers as well as partner countries for the development of mutual trade in products and services have been identified. Acceptable solutions and current anti-crisis support measures from the state in the form of subsidizing lending rates, creating “new growth points” in the economy by allocating funds for import substitution programs, etc. are outlined. An assessment of the possible damage to several friendly countries from the attempt to economically isolate one of the world’s largest economies has been completed. The countries of Southeast Asia, Africa, and Latin America are considered the main regions for the future development of international cooperation. The BRICS bloc for Russia is becoming a key integration association in terms of transforming industrial, logistics and financial chains in the global economic space. As a result, constructive conclusions about the need to use diplomatic measures to maintain neutrality and create interstate agreements that contribute to a more intensive opening of the internal markets of friendly countries for the development of mutual trade in raw materials and high-tech goods are given.