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Economic Sanctions of the West and Russian Anti-sanctions: Success or a Failure?

русская версия

Опубликовано на портале: 31-12-2016
Тематический раздел:
The main objective of the work is the analysis of the consequences for Russian economy from the imposition of sanctions by Western countries. The paper discusses issues related to the effectiveness of the sanctions on South Africa, Iraq, and Haiti; the work presents the consequences of imposition of sanctions for Russian economy as a whole, as well as highlight the impact of the introduction of anti-Russian and Russian sanctions on two sectors: banking and food industry. The first was chosen because it is an indicator of what is happening in the economy since a funding stream from the west has been blocked. As for the food industry - it is expected that the introduction of the embargo of the product will allow Russian companies to realize their potential and lead to the development of this sector. The imposition of sanctions, the fall of the ruble, as well as the decline in oil prices had a negative impact on Russian economy and the continuation of the current situation can greatly slow down its development in the future. According to our analysis we can draw the following conclusions: the banking sector came under several attacks at once (the prohibition of monetary financing from the west, the growth of past due accounts, the policy of the Central Bank). The food sector has potential for growth, but there is a lack of clear boundaries for the period of sanctions (which does not allow companies to invest in the development of food industry considerable sums), and declining purchasing power due to a significant increase in inflation for the past 2 years. The imposition of sanctions, the fall of the ruble, as well as the decline in oil prices had a negative impact on the Russian economy and the preservation of the current situation in the international arena can greatly slow down its development in the future.
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