Chernova V.Yu., Pylin A.G. THE INFLUENCE OF GEOPOLITICAL FACTORS ON THE ECONOMIC POLICIES AND INTEGRATION PROCESSES OF CENTRAL ASIAN COUNTRIES

The Bulletin of the Institute of Economics of the Russian Academy of Sciences № 5/2023. World Economy.

Veronika Yu. Chernova

Dr. Sci. (Econ.), leading researcher at the Institute of Economics, Russian Academy of Sciences, Moscow, Russia

ORCID: 0000-0001-5951-9091

Artem G. Pylin

Cand. Sci. (Econ.), leading researcher at the Institute of Economics, Russian Academy of Sciences, Moscow, Russia

ORCID: 0000-0002-1979-3624

THE INFLUENCE OF GEOPOLITICAL FACTORS ON THE ECONOMIC POLICIES AND INTEGRATION PROCESSES OF CENTRAL ASIAN COUNTRIES

136-151

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Abstract

The use of sanctions policy to compete for sales markets and to exert pressure on the governments of countries subject to sanctions has stimulated Russia to develop trade with friendly and neutral countries, to redirect the trade flows along new logistics routes and to form new supply chains. The article examines the impact of Western sanctions on the economies of the Central Asian countries and on their integration with Russia. A sharp decline in exports from Western countries to Russia is accompanied by a significant increase in exports from these countries to the countries of Central Asia, which is especially noticeable in relation to sanctioned goods. Maintaining a neutral status in the sanctions war of the United States and its allies against Russia allowed the countries of Central Asia to significantly improve their macroeconomic performance by increasing trade with Russia, including through intermediary trade. Despite official statements about the observance of the sanctions regime, the countries of Central Asia began to act as transit operators between Russia and third countries and to significantly assist the Russian economy in overcoming the negative consequences of sanctions. The study has led to the conclusion that anti-Russian sanctions encourage Russia and the countries of Central Asia to find new ways to develop regional integration in order to solve key problems of economic development, which does not prevent these countries from following their national interests.

Keywords: Central Asian countries, Kazakhstan, Uzbekistan, Azerbaijan, Russia, sanctions, economic growth, intermediary trade, parallel imports, trade flows, transport and logistics routes.

JEL: F15, O57, P27

EDN: HGLFKY

DOI: https://doi.org/10.52180/2073-6487_2023_5_136_151

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Manuscript submission date: 30.08.2023

For citation:

Chernova V.Yu., Pylin A.G. The Influence of Geopolitical Factors on the Economic Policies and Integration Processes of Central Asian Countries // Vestnik Instituta Ekonomiki Rossiyskoy Akademii Nauk. 2023. № 5. Pp. 136-151. (In Russ.). https://doi.org/10.52180/2073-6487_2023_5_136_151 EDN: HGLFKY

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