Interbudgetary transfers: variety of approaches and international practice

Abstract

In the current geopolitical situation, Russia is faced with the adoption by foreign partners of a number of politicized decisions in the monetary and financial sphere. European institutions cease their activities with Russia. The "political guidance" applied by the European Bank for Reconstruction and Development is a politically promoted, economically unsound decision dictated by the leadership of the European Region. Despite the visible damage and the appeals provided by the Russian side, the European side continues to follow the planned credit and financial policy. The development of relations on the world stage and the failure of the current global monetary and financial system put Russia in a crisis situation. Events, including political ones, which are currently taking place at the global level, leave a significant imprint on the financial and economic condition of the country. In the context of sanctions and instability, economic relations with the leading counterparty, the European Union, are suffering. The prolongation of the conflict leads to aggravation of contradictions, further cooling and colossal losses. The volume of foreign direct investment from the sector of the Russian economy has been affected to some extent by the sanctions, but the investment attractiveness of the Russian market for FDI is still significant and has every chance to enter the top three rating among developing countries. Despite the unsatisfactory state of relations between Russia and the European Union, conflict with a close neighbor hurt both sides. In order to avoid large losses and increase the distance from each other, counterparties need to find a balance to continue constructive economic cooperation.