Crisis Management under Economic Sanctions: Mission Impossible?

Abstract

Economic sanctions against Russia form a completely new context for public and private efforts to cope with crisis trends in Russian economy. With limited access to global goods, capital, and technology markets, it can at best minimize costs of the crisis but not come back to the normal growth path. Strategies to find new trade partners and sources of capital outside the group of countries that have introduced economic sanctions against Russia are welcome, but their potential is rather limited. Under these circumstances, crisis management should be centered neither on the alleged ‘Russia’s pivot to the East’ nor on the wide-scale import substitution but on normalization of economic relations with key country partners, regaining currency stability, and structural reforms aimed at moving national economy away from commodity specialization.

The Impact of Anti-Russian Sanctions on the Regional Investment Climate of Russia

“…A review of publications on the impact of sanctions on the economy of the Russian Federation and its investment climate [17], [18], [19], and the results of the analysis, made it possible to draw the followings conclusions.…”

Estimating Prospects of Russian Foreign Trade under Crisis: Sanctions and Countersanctions

“…"For example, a much more sensible shock for the Russian economy is drop of oil prices" [1, p. 33]. The situation was aggravated by a significant increase of the key rate by the Russian Central Bank [3]. As a result, the conclusion is made that the main problem of the Russian economy is not sanctions but high taxes, poor industrial development, low purchasing power of the population, and insufficient financing of the Russian regions [5].…”