The Relevance of the Strategic Partnership between the European Union and the Russian Federation in the Sanction Period

Abstract

The European Union and the Russian Federation are the major global geopoliticalplayers with intensive trade links. Globalization has deepened the interdependence of economies,which plays an important role in the path of their further economic development. The RussianUkrainian conflict has become a driving force in the centrifugal relations between the EU andthe Russian Federation, which resulted in the imposing of the sanctions. The article analyzes theimpact of sanctions on foreign trade between the European Union and the Russian Federation.In addition to the impact of sanctions on trade turnover between the European Union and theRussian Federation, it also evaluates the impact of mineral fuels, which is the essence of the energystrategic partnership, through linear regression. It presents the factors that affect the volume oftheir exports based on extended gravity models,. Although the sanctions did not have such asignificant economic impact, they were an incentive to end the formation of a new contractualframework for trade cooperation. The remedy of the geopolitical context between the EuropeanUnion and the Russian Federation is essential for their economic progress and strengthening itscompetitiveness in the world economy.