The Bulletin of the Institute of Economics of the Russian Academy of Sciences № 4/2024.  Finance.

Sergey A. Perekhod

Lecturer at the Department of Financial Markets and Financial Engineering, Financial University under the Government of the Russian Federation, Moscow, Russia

ORCID: 0000-0002-4606-1226

Anna V. Mkhitaryan

Leading Software Engineer of the Department for Ensuring the Functioning and Development of the Digital Platform «Water Data» of the Sector for the Development of the CPU Water Components, Russian Research Institute for Integrated Use and Protection of Water Resources, Moscow, Russia

Daria S. Selifonkina

Leading Expert of the Second Department of Administrative and Economic Support of the Case Management, FAS of Russia, Moscow, Russia

INTERNATIONAL SANCTIONS AGAINST RUSSIA (2014–2024): ASSESSMENT AND IMPLICATIONS FOR THE FINANCIAL MARKET

116-138

558.64  KB

Full text

Abstract

In 2024, it has been exactly 10 years since the Russian financial market was under the influence of economic sanctions from the leading countries of the world economy. Despite attempts to destabilize and degrade the Russian market, the shocks from international sanctions have not had a serious destructive effect on it. The purpose of the study is to assess the impact of sanctions restrictions on various segments of the Russian financial market and determine the extent to which sanctions can contribute to its transformation and stable development. Statistical analysis for 2004–2023 showed that international sanctions have a negative impact: volatility in the money and capital markets has increased, the Russian ruble has devalued, and inflation has surged. At the same time, the sanctions contributed to the sovereignization of the Russian financial market, the growth of which began to be determined by internal sources of financing. The further development of the Russian financial market should be associated with reforms aimed at attracting domestic investment into the economy, unconventional monetary policy and reducing the outflow of private capital, as well as appealing to financial investments from friendly countries.

Keywords: sanctions, financial marker, bonds, rate, Bank of Russia, exchange rate.

JEL: G12, G21, G11

EDN: RWIZLA

DOI: https://doi.org/10.52180/2073-6487_ 2024_4_116_138

References

1. Aganin A.D. Volatility of the Russian stock index: oil and sanctions // Voprosy Ekonomiki.2020. No. 2. Pp. 86–100. DOI: 10.32609/0042-8736-2020-2-86-100. EDN: EWHCAW. (In Russ.).
2. Aidiev E.A. Sanctions and their impact on the Russian economy // Economics and Entrepreneurship. 2022. No. 3 (140). Pp. 40–44. DOI: 10.34925/EIP.2022.140.03.004. EDN: IXOBZJ. (In Russ.).
3. Arkhipova V.V., Komolov O.O. Development of international sanctions regimes: historical aspect // Russian foreign economic bulletin. 2016. No. 3. EDN: VPSZSH. (In Russ.).
4. Evsin M.Yu. Mikhailov A.M., Spesivtsev V.A. Study of the dynamics of the structure of the Russian economy in the conditions of «new normalcy» and its impact on the financial market indicators// Science and ways of development. 2021. No. 2 (16). 119–123. EDN: JFTUBB. (In Russ.).
5. Maximovich A.S. The impact of economic sanctions on the Russian stock market // Economics and Management in the XXI century: development trends. 2015. EDN: TPDBKV. (In Russ.).
6. Meshkova A P., Vostrikova E.O., Verkhovets O. A. International economic sanctions: issues of effectiveness // Bulletin of Omsk University. The series «Economics». 2017. 2 (58). Pp. 54–62. EDN: ZGPUXF. (In Russ.).
7. Perekhod S.A. Risk modeling of macroeconomic shocks and their effects on foreign debt of Russian companies // Voprosy Ekonomiki. 2021. No. 5. Pp. 57–73. DOI: 10.32609/0042-8736-2021-5-57-73. EDN: HBHTKE. (In Russ.).
8. Silaeva V.A. Effectiveness of sanctions in international politics // Bulletin of MGIMO University. 2021. No. 14 (4). Pp. 136–153. DOI: 10.24833/2071–8160-2021-4-79-136-153. EDN: WJBTXT. (In Russ.).
9. Smirnov E.N. Economic sanctions: theory and international practice: monograph. Moscow: Rusains, 2022. P. 326. (In Russ.).
10. BaldwinA., Pape R.A. Evaluating Economic Sanctions. International Security. 1998. No. 23 (2). Pp. 189–198. DOI: 10.1162/isec.23.2.189.
11. Crozet M., Hinz J. Collateral damage: The impact of the Russia sanctions on sanctioning countries exports. CEPII Working Paper. 2016. No. 16. Pp. 1–62.
12. Drezner D.W. Bargaining, Enforcement, and Multilateral Sanctions: When Is Cooperation Counterproductive? International Organization. 2000. No. 54 (1). 73–102. DOI: 10.2307/2601318.
13. Freis J.H., Waibel M. The United States-Led Development of Financial Sanctions Since 1945 in Régis Bismuth, Luc Thévenoz and Chiara Zilioli (eds), International Sanctions: Monetary and Financial Law Perspectives (Brill 2024 г.). 2023. Pp. 1–20. DOI: 10.1163/9789004705708_004.
14. Giumelli F. The Success of Sanctions: Lessons Learned from the EU Experience. 1st ed. Routledge. 2016. P. 251.
15. Hufbauer G.C., Schott J.J, Elliott K.A., Oegg B. Economic Sanctions Reconsidered. NY: Columbia University 2007. P. 248.
16. Portela C., Orbie J. Sanctions under the EU Generalised System of Preferences and Foreign Policy: Coherence by Accident? Contemporary Politics. 2014. No. 20 (1). 63–76. DOI: 10.1080/13569775.2014.881605.
17. Whang T. Playing to the Home Crowd? Symbolic Use of Economic Sanctions in the United States: Playing to the Home Crowd? International Studies Quarterly. 2011. 55 (3). Pp. 787–801. DOI: 10.1111/j.1468-2478.2011.00668.x.

Manuscript submission date: 13.07.2024 

For citation:

Perekhod S.A., Mkhitaryan A.V., Selifonkina D.S.  International sanctions against Russia (2014–2024): assessment and implications for the financial market // Vestnik Instituta Ekonomiki Rossiyskoy Akademii Nauk. 2024. № 4. Pp. 116-138. (In Russ.).  https://doi.org/10.52180/2073-6487_ 2024_4_116_138 EDN: RWIZLA

  Creative Commons 4.0