Western Sanctions Research Articles

The impact of western sanctions on the role and place of Russia in relations with Kazakhstan (political and economic aspect)

The paper is dedicated to the impact of anti-Russian sanctions on the investment activity of Russian companies in the post-Soviet space, in particular in Kazakhstan. After 2014, Russian capital was forced out of the Ukrainian economy and partially relocated to Kazakhstan, which today is a key place for foreign direct investment among the CIS countries. China, the USA, Turkey and EU countries also show high activity in the capital market of Kazakhstan. The conflict of commercial interests of these countries on the territory of Kazakhstan may become a significant factor of political tension in the post-Soviet space.

Russia-China relationship in the context of the war in Ukraine: Bonding Over Shared Ideology or Western Sanctions

In the face of the Russia-Ukraine war, Russia’s trade and economic potentials have been limited and restricted mostly due to the imposition of sanctions. Consequently, a bond between Russia and China has developed, putting aside their former disagreements and disputes. This goes together with the fact that both countries face a shared adversary from the US and the West, which has worked in pulling them closer to each other. Amidst the dynamic environment of worldwide trade, the economic collaboration and strategic alignment between China and Russia stand out as a crucial axis. This article investigates the interdependency and asymmetries of their bilateral partnership and how they have shaped their global trade relation. Furthermore, it also analyzes the historical background of Sino-Russian connections, emphasizing significant milestones and policy changes that have influenced their present economic interconnection. It analyses the problem areas of their relation and whether this bonding will withstand future changes in the global order.

Features and prospects of the Russian civil aircraft industry development under sanctions pressure from Western countries

The specifics and prospects of development of the Russian civil aircraft industry under sanctions pressure from Western countries have been considered. The study analyzes secondary data from open sources. The main provisions and conclusions of the work are as follows. The United States of America and its European satellites have imposed comprehensive sanctions against Russian air carriers, including a ban on aircraft deliveries. Lessors who owned foreign airplanes made demands for their return, and foreign registrars suspended airworthiness certificates for domestic airplanes. Western sanctions against Russian airlines have caused significant damage to Russia, but have also become a serious stimulus for the domestic aviation industry development. Significant time and investment will be required to resolve the problems encountered. Russia has the necessary potential to restore the aviation industry and ensure safe passenger and cargo transportation in the required volume. The country is currently working systematically to revitalize the industry, implementing advanced developments and establishing serial production of a wide range of civil aircraft. The success of the domestic aviation industry development depends mainly on the state’s efforts, as it has the access to almost all production and design capacities. In addition, effective measures are needed to influence the air transportation industry in order to balance the supply and demand for aircraft.

Die neue Geoökonomik und ihre Auswirkungen auf den Wirtschaftsstandort

Abstract Geopolitical rivalries create mistrust between trading partners. These try to guard themselves against the opportunistic abuse of trade policy by de-risking and de-coupling. Indeed, first empirical evidence points towards an increasing division of the world economy into an US-centered and a China-centered block. Western sanctions against Russia have strongly accel-erated this tendency. Increased fragmentation disincentivizes corporate strategies based on serving foreign markets by exports and favors local-for-local models. This endangers value-added creation in small, open economies such as Austria. Countermeasures must include deepening the European Single Market, striking trade agreements with aligned and neutral countries, and promoting cost efficiency of European production.

Belarusian economy in the face of Western sanctions

In recent years, Belarus has been developing in conditions of extreme turbulence and uncertainty of socio-economic development due to the intensification of external and internal threats, undermining the possibilities of sustainable and balanced economic growth. Among the key external threats, we should mention: the rapid increase in geopolitical tensions after the rigged presidential elections in Belarus in August 2020 and the unprecedented pressure of sanctions from Western countries on the economy of Belarus, the migrations crisis, and Russia after the Russian invasion of Ukraine in February 2022. The broken dialogue with the West deprived President Lukashenko of the possibility of balancing between the EU and Russia, especially in the economic field. This article analyzes the condition of the Belarusian economy against the background of Western sanctions imposed on the country in 2020 and 2022.

Экономическая динамика и эколого-экономическая устойчивость арктических регионов России

This paper explores the environmental and economic resilience of the regions within the Arctic zone of the Russian Federation (AZRF). We define a region's environmental and economic resilience as its capacity to withstand external shocks, independently restore the balance between its economy and environment, and transform while maintaining or improving the balance between its environmental and economic systems. The study's relevance stems from the rapid industrialization of the Russian Arctic in recent years and the constraints on investment in environmental technologies, green production, and management. The study discusses an analysis of macroeconomic, environmental, and economic indicators of the Russian Arctic regions, examining their interrelations during the pandemic crisis and under the pressure of Western sanctions. From 2018 to 2022, the anthropogenic impact on the environment in the Russian Arctic gradually declined, although the situation varied for individual indicators depending on trends in the regional sectors. Regions were identified that lead in environmental and economic resilience as well as those showing increased anthropogenic impact despite declining industrial production. A multidimensional classification of regions in the Russian Arctic was developed based on indicators characterizing the state of the environmental and economic spheres. Clusters of regions with high, low, and limited levels of environmental and economic resilience were identified. The study revealed that the macroeconomic situation in these regions is more dynamic than their environmental and economic conditions. Macroeconomic indicators in the Arctic regions demonstrate different trends during periods of external shocks. Overall, the Russian Arctic economy was sensitive to the 2020 crisis; the 2022 sanctions had a negative impact on economies focused on Western markets, and in 2023, macroeconomic dynamics slowed down across all regions of the Russian Arctic. Further research is necessary to understand the factors influencing the environmental and economic resilience of the Russian Arctic regions under current conditions.

Санкции – странный феномен

The history of international economic sanctions is simultaneously old and relatively young. The first sanctions recorded in written history were applied in ancient times, but the newly introduced punitive economic measures received legal status only after the First World War. At first, sanctions were not given much political significance and there were not many of them. The situation changed radically after the Second World War and especially after the collapse of the USSR. The rapid increase in sanction activity over the past two decades is a manifestation of the desire of the United States and its satellites to protect their position as a world hegemon. The punitive economic apparatus, the most powerful in the United States, is set up for sanction activity and generates restrictions and prohibitions as the main products of its activity. To paraphrase the philosopher Rene Descartes, the western sanctions government officer use to say: “I authorize, therefore I exist”. International economic sanctions are losing their original function as a means of preventing military conflicts and are turning into an economic weapon. But, paradoxically, attempts to interpret them as an instrument of economic policy are not valid, if only due to the fact that working with the categories of “efficiency”, widely used in economic science, is impossible in the case of sanctions. Instead of “efficiency”, the term “effectiveness” should be used, but measuring the latter, unlike “efficiency”, is impossible; therefore, the phenomenon of sanctions, as such, largely goes beyond the scope of economic science. The nature of modern sanctions is perverse. Their use not only entails economic degradation and destruction of the institutional structure of society in the target countries, but also causes damage to the sending countries. Most modern sanctions are illegitimate and have no moral justification. Sanctions and their systematic application are nothing more than a geopolitical weapon used to undermine the sovereignty of independent states. This article shows the historical evolution of the sanctions mechanism, its degeneration and transformation into a stable institutional entity.

Impairing Globalization: The Russo-Ukrainian War, Western Economic Sanctions and Asset Seizures

The potency of economic sanctions imposed on nations depends on demand and supply adjustment possibilities. Adverse GDP impacts will be maximal when import, export, production, distribution and finance are inflexible (universal non-substitution). This paper elaborates on these conditions and quantifies the maximum GDP loss that Western sanctions could have inflicted on Russia in 2022–2023. It reports the World Bank’s predictions, contrasts them with the results and draws inferences about the efficiency of Russia’s workably competitive markets. This paper shows that Russia’s economic system exhibits moderate universal substitutability and is less vulnerable to punitive discipline than Western policymakers suppose. The likelihood that economic sanctions will compel the Kremlin to restore Ukraine’s territorial integrity ceteris paribus is correspondingly low, even though war reduces Russia’s quality of existence. Western economic sanctions serve narrow geostrategic ends that are reconcilable with Pareto-efficient free trade and globalization, if precision-targeted, but as the Russo-Ukrainian war intensifies, an expanded array of novel and dubiously legal sanctions is degrading free trade, and spurring de-globalization and anti-Western coalitions. If this armed combat is prolonged, the goals of free trade and globalization could be set back for decades.

서방제재가 러시아 주요기업의 활동에 미친 영향 분석: 25개 상장기업을 중심으로

After the Ukraine crisis in 2014, Russia has been under economic sanctions from the West. Since the outbreak of the Russia-Ukraine war in 2022, Western sanctions are expanding in various sectors, including individuals, organizations, industries, and trade, and are to continued in the long-term. Among various studies on the effectiveness of sanctions, research discussing whether sanctions against specific targets have the intended effect is emerging. Against this background, this study seeks to analyze the impact of Western sanctions on Russian companies, especially those listed on the Russian stock market. Using panel data from 25 major Russian companies from 2012 to 2021, the author examined factors that affected corporate performance, including Western sanctions, with a fixed effects model. As a result, Western sanctions did not have a significant impact on the business activities of major Russian companies. It was found that the macroeconomic and internal company factors were more decisive factors. This study was unable to include data after 2022 due to corporate data accessibility and release period, therefore this needs to be complemented through additional research.

Drivers of Arab Countries’ Growing Interest to the Eurasian Geopolitical Space

Facing the dynamic development of diversified contacts between Russia and the Arab world amidst the steadily increasing political and economic interest of Arab countries[1] in the Eurasian geopolitical space, an adequate assessment of the causes and the strength potential of such growth has acquired particular importance. This enables us to hedge both political and business risks by predicting scenarios for the future development, and, which is even more important, to address effectively challenges and problems. The successful implementation of the Foreign Policy Concept of the Russian Federation approved on March 31, 2023 in the medium and long terms depends on the survivability of the new paradigm of relations between Russia and the Arab countries, regardless of the anti-Russia Western sanctions. This fully correlates with Russian efforts to promote integration processes in Eurasia, primarily under the within the framework of the Shanghai Cooperation Organization as well as outside Eurasia with the involvement of big Eurasian states (India, China) and the non-Eurasian “rising powers” (Brazil, South Africa, etc.) on the BRICS platform. The comprehensive analysis of the factors which have been stimulating the interest of the Arab countries in Eurasia, complementing the already existing sporadic domestic and foreign studies, is intended to form a list of arguments in favor of proving the hypothesis of the strategic, rather than purely tactical nature of the intentions of Arab elites to cooperate with Russia and other Eurasian states. Such arguments imply among other things the common perception by Russia and the Arabs of the current historical transition from the unipolar to a multipolar world.

Anti-Russian sanctions in the domestic oil and gas industry: problems and prospects

The relevance of the topic of the scientific article is determined by a number of circumstances related to the fact that the oil and gas industry is one of the main sectors of the Russian economy, as well as an important component of domestic exports. The sanctions of Western countries on the economy of the Russian Federation have had a noticeable impact on the operating conditions of the industry and the requirements imposed on it by the world and the national economy. The article formulates the challenges facing the industry, which is under sanctions, and shows the possibilities of its development in 2024 and in the future. According to the author, the effectiveness of industry management, improvement of technologies, logistics, as well as the search for non-traditional sales markets are of fundamental importance today. The purpose of the article is to identify the problems of the domestic oil and gas industry that arose in the sanctions conditions, to identify realistic directions for its development. The subject of the study is the hydrocarbon industry of the Russian Federation, the object of the study is changes in the domestic energy sector under the influence of Western sanctions. The article used analytical, comparative, empirical methods and visualization. It is shown that along with the development of traditional energy in the Russian Federation, it is important to pay close attention to the intensification of activities in the field of renewable energy sources. A number of measures have been proposed to reduce the negative impact of sanctions on the hydrocarbon segment of the domestic economy.

The Real Effects of Credit Supply Shocks: Evidence from an Emerging Economy

AbstractWhat role do credit supply shocks (CSS) play in macroeconomic dynamics in emerging economies? We exploit Russia's setting, including the 2014 Western sanctions, and show that a negative CSS normalized to 0.5 p.p. increase in the lending rate leads to a decrease of 2 p.p. in the output growth rate, 1.5 p.p. in the consumption growth rate and 5 p.p. in the investment growth rate within a quarter. The heterogeneity of the household and firm responses to CSS is driven by debt‐to‐income and leverage ratios, with indebted poorer households and larger firms being more sensitive to fluctuations in credit conditions.

Different Realities Surrounding the 2022 Russo-Ukrainian Conflict: The Cases of Russia Today and CNN

The aim of this small-scale research is to provide a combined quantitative and qualitative analysis of the framing of news articles about the 2022 Russo-Ukrainian conflict, focusing on online news portals Russia Today (RT) and CNN. The 5 generic frames: Attribution of responsibility, Human interest, Conflict, Morality, and Economic consequences, developed by Semetko and Valkenburg (2000), were used to perform the analysis. The purpose of this study was to compare the dominant frames and the extent of their usage in the two outlets. Following the compilation of two separate corpora with an equal distribution of 100 articles from each outlet, the articles were classified according to the frames they exhibited by utilizing a set of yes/no questions. To ensure reliability, the classifications were performed independently by both authors. The results of the analysis showed on one hand significant differences in the framing of the war between the two outlets, and on the other similarities in the extent to which framing was utilized. RT mostly relied on the Attribution of responsibility frame to present the West as responsible for the outbreak of war, as well as the Economic consequences frame to portray the Russian economy as resilient despite the Western sanctions. On the other hand, the most frequent frames in CNN’s articles were Conflict and Human interest, which focused on battlefield reports and the portrayal of the Ukrainian side as worthy of assistance, respectively.

Russian IT Market Under Western Sanctions Constraint

Russian IT Market Under Western Sanctions Constraint

Some Trends in EAEU Cooperation with Latin-Caribbean America

The Eurasian Economic Union (EAEU) is a rapidly developing integration structure. Its main priority in activities is economic development, even more precisely, trade. At the same time, at the beginning of its activities, the main attention of the member states of the association was focused on the development of domestic trade. The creation of a customs union and a single economic space basically solved this problem. The current development of the structure, in accordance with the global trend, was the expansion of trade relations with border, regional and non-regional partners. Thus, there is a process of integration of integrations, i.e. interaction at the level of integration structures and individual states. Since the EAEU’s main activity is the economy, first of all, we are talking about the creation of Free Trade Zones (FTAs).Aim. The purpose of the article is to identify the dynamics and directions of the development of relations between the EAEU and the countries of Latin America and the Caribbean.Tasks. Consider the main trends and stages of interaction between the LACB countries and the EAEU; identify new directions for the development of Eurasian integration.Methods. The use of a systematic approach made it possible to analyze integration processes taking into account various directions. The method of historical and comparative analysis was used to compare the concepts of the development of integration. Situational analysis made it possible to demonstrate the dynamics of the development of Eurasian integration and the formation of interaction with external actors.The sociological approach made it possible to consider as a special variety of international structures with the characteristics of both intergovernmental bodies and organizations.Results. Against the background of the development of economic interaction, new areas of interaction have been identified.Conclusions. In the current third stage of cooperation between the EAEU and the LKA, the element of political communication of the organization’s information function is strengthened, which is a response to the political crisis on the one hand, and on the other, opposition to Western sanctions in terms of attempts to isolate Russia in the world.

The Russian economic policy and its relations with China and India in the aftermath of Western sanctions (2014 - 2023)

The article delves into Russia's economic strategy in response to financial sanctions imposed by the West from 2014 to 2023, analyzing its monetary policies and capital controls. Additionally, it examines Russia's financial relations with China and India, highlighting how these nations became key allies following the sanctions due to the annexation of Crimea and the invasion of Ukraine. The article investigates the nature of the alliance formed by Russia and China highlighting the symbiosis generated at the core of this relationship and the importance of India in playing a strategic role in the economic network woven by Russia.

Brazil and BRICS Plus in the new phase of multipolar (de) globalization

This article analyzes the geopolitical and economic transformation driven by the BRICS and its expansion into BRICS+. The BRICS, composed of emerging economies and influenced by the Goldman Sachs report, established the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) as alternatives to the World Bank and IMF. Cooperation between Russia and China intensified following Western sanctions and the war in Ukraine. The article also discusses social inequality within BRICS+ and the bloc's limitations in confronting the New World Order and imperialism. It concludes that BRICS+ still operates within the confines of global capitalism, offering few substantial solutions to the challenges of labor and environmental exploitation.

Some issues of Russia's transport policy in the context of Western sanctions

The aspects of Russia's transport policy at the present stage in the context of the tightening of Western sanctions pressure are considered. The project of the North-South international transport corridor is considered as a transport response to attempts to push Russia away from the global South. Particular attention is paid to the political and technological aspects of the formation of the international transport corridor of the North-South project, the negative consequences of the sanctions imposed by Western countries against the transport industry of Russia are shown. An assessment of the actions of the United States and partners to counteract the creation of the North-South international transport corridor through the formation of alternative transport projects of the Lapis Lazuli Corridor and the Zangezur land transport corridor is given. Showing actions of the Government of the Russian Federation to defend the North-South project. In order to counter the threats from Britain and Great Britain, Russia and its partners in the formation of the North-South International Transport Corridor need to preserve sovereignty in international relations, counteract the interference of third countries in their plans, and strengthen the collective military security of their countries. It is important not to succumb to provocations, to show flexibility and mutual willingness to cooperate. This will not only help to overcome obstacles to the implementation of the North-South ITC project, but will also help the participating countries to move forward on integration issues, strengthening their relations.

Labor productivity within the framework of the Labor Productivity and Employment Support national project

According to macroeconomic estimates, the Russian economy is characterized by a relatively low level of labor productivity, two to three times inferior to the economies of a number of industrialized countries. The lower level of labor productivity in Russia in comparison with the leading global economies is manifested especially at the microlevel. Increasing labor productivity is one of the most important tasks of the domestic economy in terms of ensuring competitiveness in the world markets. The importance of this process is intensified in the current conditions characterized by Western sanctions aimed at weakening the Russian economy. This determines the relevance of the present study. The purpose of the study is to analyze the labor productivity state in the process of implementing the Labor Productivity and Employment Support project. The subject of the study is labor productivity at the micro- and macrolevels, in individual industries and regions. The study used data from the national project passport, official data from the Federal State Statistics Service and the Ministry of Economic Development of the Russian Federation, and methods such as analysis and synthesis, generalization, grouping, tabular, etc. The presence of significant inter-industry and intra-industry differentiation of Russian companies by the labor productivity level and different methods of calculating labor productivity, which makes it difficult to choose the most effective economic entities, has been revealed. One of the reasons for lagging behind other countries in terms of labor productivity is, among other things, the technological lag of domestic companies. At the same time, the regions do not sufficiently use the possibilities of tax incentives for investment by establishing a tax deduction, and labor motivation is weakened. The labor productivity indicator is not used in ranking regions by the socio-economic development level, as well as for the purposes of assessing regional managers effectiveness.

Is the Path to Citizenship through Property Investment Possible in Russia?

Introduction. Real estate has undoubted investment advantages. Moreover, in a number of countries it is a bridge for simplified obtaining a residence permit or even citizenship. In Russia, the legal regime of immovable property undoubtedly has a number of advantages. The very possibility to have property on the right of private ownership (including land plots) gives owners confidence in the possession and use of real estate. The legislation on real estate is characterized by stability and is less susceptible to change. Low rates of property tax calculated on the cadastral value of the property facilitate the acquisition of real estate. The variety of real estate objects allows citizens and legal entities to own residential and non-residential premises and parking places. With the development of digitalization of state administration, the registration of rights to immovable property has become as simple and accessible as possible, allowing owners to protect their property from fraudulent schemes. Property prices in Russia are steadily rising, which also stimulates investment in this sector. Whether investments in real estate contribute to obtaining citizenship of the Russian Federation in an accelerated (preferential, facilitated, etc.) manner will be shown in this article. Materials and methods. This study is based on: 1) the totality of such methods of scientific cognition as: the dialectical method, which allowed to connect the theory of civil and land law and the practice of the Constitutional Court of the Russian Federation; the formal-legal method allowed to analyse legislative norms; the system method allowed to consider the institute of national treatment of foreign citizens in Russia as a system with internal unity and interrelations with other institutions of law (the institute of citizenship, the institute of property rights, etc.); 2) the results of the author's survey of the moderators of My Hectar Programme regarding the demand of foreign citizens for land plots sold under the Programme; 3) analysis of the Decisions of the Constitutional Court of the Russian Federation. Research results. The study found that in Russia, at the constitutional level, foreign citizens are granted national treatment, exceptions to which are provided for by federal laws. Restrictions on the rights of foreigners are stipulated by a number of federal laws. For example, civil legislation has traditionally prohibited ownership of certain categories of land plots. As a response to western sanctions, in March 2022 a special permissive procedure was introduced for citizens of unfriendly countries to acquire ownership of real estate. The legislation on citizenship of the Russian Federation does not provide for any privileges for foreigners to obtain citizenship through investments in the country's economy in general, in real estate and business in particular.Discussion and сonclusion. The Russian Federation policy regarding the rights of foreign citizens to immovable property should continue to be aimed at maximum protection of the interests of national security and sovereignty of the country, and priority opportunities for Russians to acquire real estate. Certainly, the state should stimulate foreign investment. However, in the conditions of aggravation of international relations and threats to Russia's national security, it would be advisable to introduce a permissive procedure for the acquisition of real estate for all foreign citizens, taking into account the foreigner's occupation and the purpose of acquiring real estate, sources of his income, possible links with organizations banned in Russia.