Explaining the Limited Impact of Sanctions on Russia ...
journal contribution
posted on 2024-10-06, 16:39authored byFloudas, Demetrius
We investigate the limited impact of sanctions on Russia following its 2022 invasion of Ukraine. Despite being the most sanctioned nation ever, Russia's economy has proven more resilient than anticipated. Several factors underpin this resilience: pre-invasion preparations, conservative fiscal policies by the Central Bank of Russia, government expenditure control, and reliance on high oil prices. The rouble’s relative stability and the stock market's resistance further illustrate Russia's economic robustness. Russia has reoriented its trade towards non-sanctioning countries and focused on developing domestic industries, reducing its reliance on imports. We further explore the geopolitical ramifications of sanctions, noting that they have bolstered domestic support for the Russian government while failing to significantly diminish its war capabilities. The sanctions have, paradoxically, fortified Russia's economic independence, compelling it to substitute foreign components with domestic alternatives and ...