Economic Sanctions and Their Impact on Russian Economic Relations with the European Union

Abstract

This article considers the exchange of sanctions between the European Union (EU) and Russia, and the impact of this exchange on their economic ties. The exchange of sanctions fits the pattern of destructive “economic patriotism,” which has spread in the context of twenty-first-century globalization. The process contributes to economic isolation and negatively affects, although to varying degrees, the economic development of the EU and Russia.

Keywords::

• economic sanctions
• sectoral restrictions
• strategic sectors
• investment ties
• foreign capital

Keywords::

• F21
• F42
• H77
• L52
• O19
• O38
• O52

Notes

English translation © 2016 Taylor & Francis Group, LLC, from the Russian text © 2014 “Voprosy ekonomiki.” “Ekonomicheskie sanktsii i ikh vliianie na khoziaistvennye sviazi Rossii s Evropeiskim soiuzom,” Voprosy ekonomiki, 2014, no. 12, pp. 67–69. Marina Klinova is a Doctor of Economic Sciences and senior research fellow at IMEMO, Moscow. Elena Sidorova is a Candidate of Economic Sciences, senior research fellow at IMEMO, and senior lecturer at the Moscow State Institute of International Relations. Translated by Peter Golub.

^1. GDP (current U.S. dollars). http://databank.worldbank.org/data/views/reports/tableview.asp

^2. Wolfgang Schäuble,“Oberste Priorität hat die Wahrung von Stabilität und Frieden,” July 28, 2014; available at www. bundesfinanzministerium.de/Content/DE/Interviews/2014/2014-07-28-bams.html.

^3. For international investment in 2013, see www.gks.ru/bgd/free/B04_03/IssWWW.exe/Stg/d03/40inv27.htm.

^4. On Amending Resolution of the Government of the Russian Federation no. 778, August 7, 2014.

^5. The external debt of the public sector, by the expanded definition, covers the external debt of banks and nonbank corporations in which the government or the Bank of Russia, directly or indirectly, owns 50 percent or more of the equity or controls them in any other way (www.cbr.ru/statistics/print.aspx?file = credit_statistics/debt_an_new.htm&pid = svs&sid = itm_7470).

^6. Initially, in September 2014, he had asked for 1.5 trillion rubles, which Rosneft proposed to extract from the National Welfare Fund, the resources of which at the time amounted to 3.2 trillion rubles.

^7. For the EBRD on new investments in Russia, see the EBRD statement on operational approach in Russia (2014); available at www.ebrd.com/russian/pages/news/press/2014/140723c.shtml.

^8. See www.finmarket.ru/news/3827900/.

^9. See http://ria-m.tv/news/18245/ne_nado_smeyatsya_nad_sanktsiyami_ekonomicheskiy_kommentariy_dnya.html.

Additional information

Funding

This article was prepared in association with the Institute of World Economy and International Relations (IMEMO) and financed by a Russian Science Foundation Grant (Project no. 14-28-00097, “Optimizatsiia rossiiskikh vneshnikh investitsionnikh sviazei v usloviiakh ukhudsheniia otnoshenii s EU”).