Crisis Management under Economic Sanctions: Mission Impossible?

2015 ◽  
pp. 20-36 ◽  
Author(s):  
S. Afontsev
Keyword(s):  
Crisis Management ◽  
Import Substitution ◽  
Normal Growth ◽  
Economic Sanctions ◽  
Public And Private ◽  
Technology Markets ◽  
Economic Relations ◽  
Russian Economy ◽  
Wide Scale ◽  
Trade Partners

Economic sanctions against Russia form a completely new context for public and private efforts to cope with crisis trends in Russian economy. With limited access to global goods, capital, and technology markets, it can at best minimize costs of the crisis but not come back to the normal growth path. Strategies to find new trade partners and sources of capital outside the group of countries that have introduced economic sanctions against Russia are welcome, but their potential is rather limited. Under these circumstances, crisis management should be centered neither on the alleged ‘Russia’s pivot to the East’ nor on the wide-scale import substitution but on normalization of economic relations with key country partners, regaining currency stability, and structural reforms aimed at moving national economy away from commodity specialization.

scholarly journals Comparative analysis of the prerequisites and priorities of import substitution at various stages of development of the Russian economy

2019 ◽  
Vol 81 (1) ◽  
pp. 366-372
Author(s):  
A. V. Litvinova ◽  
N. S. Talalaeva ◽  
M. V. Parfenova
Keyword(s):  
Raw Materials ◽  
Import Substitution ◽  
Economic Sanctions ◽  
Foreign Market ◽  
The United States ◽  
The European Union ◽  
Export Structure ◽  
The Past ◽  
Russian Economy ◽  
Long Time

Import substitution is an integral part of the strategy to improve the competitiveness of the national agri-food complex. It should be a stimulus that will accelerate the economy and will contribute to the formation of a self-replicating mechanism of economic growth. The study analyzed the development of import substitution during the introduction of economic sanctions by Western countries and the United States. The study showed that the need for import substitution was brewing for a long time, however, the sanctions served as the impetus for its acceleration. The introduction by the President of the Russian Federation of special economic measures did not contradict the existing legislation and was aimed at restricting the importation of many types of products from abroad for the development of domestic production. The commodity structure of domestic exports and imports was also analyzed: the export of hydrocarbons has been prevailing for many years, but over the past two years their share in the total export structure has decreased. Most of the country imports machinery, equipment, vehicles, food and agricultural products, chemical products. For most indicators, there is a negative trend, due to which domestic imports decreased over the period of the sanctions by more than 100 billion US dollars. Despite economic sanctions, the European Union remains the main trading partner of Russia. Over the past 25 years, Russia has been a passive participant in international trade and, despite its high potential in the development of agriculture, was perceived by the world community as a country focused on the export of raw materials and hydrocarbons to a foreign market, rather than on the development of its own production, including agricultural production.

New Economy of Kaliningrad Region

2005 ◽  
pp. 23-39 ◽  
Author(s):  
T. Gareev ◽  
V. Zhdanov ◽  
G. Fedorov
Keyword(s):  
Import Substitution ◽  
Social Consequences ◽  
Service Industries ◽  
Special Economic Zone ◽  
The European Union ◽  
Russian Market ◽  
Economic Relations ◽  
Russian Economy ◽  
Economic Zone ◽  
Kaliningrad Region

Since 1991 the regime of the free (since 1996 - of the special) economic zone has been in effect in Kaliningrad region. The regime has considerably determined the economic development of the region. Before 1998 drastic recession had affected traditional industries as well as construction and agriculture and most of the service industries. But after 1998, as the Russian economy began to recover from the crisis and the Russian market started to expand, the aforementioned economic regime led to high rates of production growth and to the development of a new regional economy oriented at import substitution and servicing foreign economic relations. At present, when the region has turned into an enclave within the European Union, and the "zonal" mechanism is being questioned, a threat of new drastic breakage of the established economic structure emerges, followed by unavoidable negative social consequences. The ways of modernization of the regional economic mechanism based on the improvement of the law on the Special Economic Zone are analyzed in the article.

scholarly journals Impact of Economic Sanctions on the Volume and Structure of Russia's Foreign Trade Turnover

2021 ◽  
Vol 11 (4) ◽  
pp. 3904-3919
Author(s):  
Natalya N. Shchebarova ◽  
Nadezhda L. Tropnikova ◽  
Andrey R. Gafurov ◽  
Mariia A. Utkova ◽  
Anna Yu. Fofanova ◽  
...  
Keyword(s):  
Foreign Trade ◽  
Policy Design ◽  
Import Substitution ◽  
Economic Sanctions ◽  
Adaptation Measures ◽  
Russian Economy ◽  
Trade Turnover ◽  
Expert Assessments ◽  
Foreign Trade Turnover ◽  
The Impact

The goal is to present a comparative analysis of statistical data on the indicators of the foreign trade turnover of the Russian Federation under the conditions of economic sanctions and anti-sanctions, as well as the results of expert assessments on the current import substitution policy. Design/methodology/approach – methods for comparing and grouping indicators that allow comprehensively and dynamically considering the state of Russia's foreign trade turnover, taking into account changes in the country and commodity aspects in the volume of exports and imports in the context of economic sanctions and a counter food embargo. Conclusions – the paper proves that the decline rate in foreign trade turnover in relation to the pre-sanctioned 2013 has slowed down, which indicates the relative adaptation of the Russian economy and the effectiveness of the anti-crisis measures taken. The main recommendations have been formulated that require the concentration of protective adaptation measures on the instruments of selective protectionism with free trade measures. Originality/significance – the paper provides a comprehensive analysis of the impact of economic sanctions on the volume and structure of Russia's foreign trade in the context of growing pressure on foreign trade in a gradual increase in sanctions, and this trend should be timely detected.

scholarly journals Value added distribution in Russian corporations: case of Gazprom

2020 ◽  
Vol 164 ◽  
pp. 09041
Author(s):  
Dmitri Pletnev
Keyword(s):  
Value Added ◽  
External Pressure ◽  
The State ◽  
Consolidated Financial Statements ◽  
Public And Private ◽  
Economic Relations ◽  
Russian Economy ◽  
Role Of The State ◽  
Private Corporations ◽  
State Employees

The modern Russian economy is basically the economy of corporations, both public and private. For this reason, the peculiarities of economic relations between the main centers of power in corporations and outside them, affect the results and efficiency of the economy. Corporations are becoming instruments of geopolitical influence, establishing economic ties with neighboring countries even under conditions of external pressure. One of the typical Russian corporations today is Gazprom, the largest gas producer. It combines the strengths of both the state and private corporations. The article considers in detail the distribution of value added to Gazprom according to the consolidated financial statements for 2012-2017. It reveals trends and patterns that allow to determine the strengths and weaknesses of this corporation as a driver of the development of the Russian economy. The main stakeholders (state, employees, top management and creditors) are identified. The research uses methods of synthesizing the partial indicators of various forms of reporting, data from Gazprom’s official website and open sources. The uniqueness of the research consists in the author’s method of calculating the amounts of value added received by each stakeholder. The role of the State as the main stakeholder of the corporation Gazprom is justified.

scholarly journals The Iran Factor in U.S.-China Relations: Guarded Engagement vs. Soft Balancing

2017 ◽  
Vol 03 (02) ◽  
pp. 299-323 ◽  
Author(s):  
Foad Izadi ◽  
Esfandiar Khodaee
Keyword(s):  
United States ◽  
Economic Sanctions ◽  
The United States ◽  
United Nations Security Council ◽  
Veto Power ◽  
Obama Administration ◽  
Economic Relations ◽  
Soft Balancing ◽  
Trade Partner ◽  
Trade Partners

Before the nuclear agreement with Iran, the Obama administration actively engaged with world powers and trade partners of Iran to strengthen the effectiveness of economic sanctions against Tehran. The role of China as the largest trade partner of Iran and as a veto power in the United Nations Security Council (UNSC) was controversial in this regard. Washington persuaded most of Iran’s trade partners to join in the sanctions and reduce trade with Tehran. But during the same period, China continued and even expanded economic relations with Iran. Reviewing the events through a process-tracing method, this study reveals that the Obama administration implemented a “guarded engagement” strategy to persuade China to join in the sanctions and reduce trade with Tehran. On one hand, the United States accommodated China’s interests and concerns, and engaged and bargained with China; on the other hand, Washington pressured Beijing through different channels such as security threats and economic sanctions. In response, through a soft-balancing strategy, China did not directly oppose the United States, in order to safeguard relations with Washington; and it eventually voted in favor of the UN resolutions after negotiating over the texts. In the meantime, Beijing refrained from voluntary cooperation with Western sanctions and even increased trade with Iran and filled the void to make sanctions abortive and costly, and to prevent U.S. domination over the Middle East. This study concludes that China’s current standing is such that U.S. diplomatic levers, such as bargaining, threats, sanctions, and pressures, are too costly and barely productive in getting Beijing to follow American policies.

scholarly journals SARS-COV-2: Rise and fall of the Croatian scenario. An ethnography of the corona-politics in the Croatian pandemic crisis management

2021 ◽  
Vol 69 (3) ◽  
pp. 575-592
Author(s):  
Ines Prica
Keyword(s):  
Crisis Management ◽  
Social Economic ◽  
Public And Private ◽  
Social State ◽  
Economic Relations ◽  
Social Actors ◽  
The Public ◽  
The Social ◽  
Social Critical ◽  
Public And Private Sector

The oscillations in the Croatian scenario of the struggle with the pandemic are followed by the considerable rearrangements of the key social actors. The initial success in the controle of the disease, as well as goverment measures for the rescue of national economy (recognized as the return of social state), have led to the unprecedentent public suppport and hope in the renowal of the disturbed social cohesion. The optimism was projected in the unexpected cognitive collectivity awaken by trust in the credible and expert management of the crisis, clear of political manipulations. Nevertheless, the divergence in both political and professional judgements of the coming changes of epidemiological measures, aimed to balance the public health and the social-economic risks, have led to the unexpected realignments of the social-critical stances, especially concerning the cultural understanding of labour economic relations, marked by the conflict of the public and private sector.

scholarly journals Economic sanctions as an instrument of pressure on the Russian economy

2021 ◽  
pp. 140-147
Author(s):  
Tat'yana Sidorina ◽  
Liana Sitnikova
Keyword(s):  
Economic Sanctions ◽  
Negative Consequences ◽  
Economic Relations ◽  
Current Process ◽  
Economic Instability ◽  
Russian Economy ◽  
World Economic

Russia's desire to assert its position in a multipolar world in the context of the current process of globalization of world economic relations against the background of political and economic instability makes the problem of sanctions very urgent. This article presents the essence, types, positive trends and negative consequences of economic sanctions and countermeasures for the Russian economy.

Tools for the development of innovative entrepreneurship in the region

2019 ◽  
pp. 66-72
Author(s):  
V. P. Basenko ◽  
V. A. Dianova
Keyword(s):  
New Technologies ◽  
High Tech ◽  
Organizational Forms ◽  
Public And Private ◽  
Economic Agents ◽  
Russian Economy ◽  
New Organizational Forms ◽  
Innovative Solution ◽  
Public And Private Cooperation ◽  
Effective Use

The article is devoted to the problems of innovative enterprise development. Since the Russian economy is in a state of financial and economic stagnation, there is a need to apply radically new innovative directions of business activities that ensure the effective use of financial potential within the framework of national projects. Practice shows that today the business sector in Russia is not able to provide a full-fledged demand for new technologies. Therefore, there is a need for substantial state support to provide centralized orders for high-tech industries. There are already examples of combining the efforts of a number of Autonomous economic entities to implement innovative reforms, new organizational forms of interaction have been formed, such as: centers for the implementation of innovative ideas; centers for engineering services; business incubators, etc. The subjects of these organizational forms of cooperation developed and proposed measures aimed at innovative solution of technological problems relevant to the regional economy, as well as for the country as a whole. Link for the efficient interaction of economic agents becomes an inherent characteristic, is the need of implementation of mechanisms of coordination with “network interaction”. It is important to note the fact that the existing relations and forms of regulation of various systems are not permanent, there are no strategic concepts aimed at long-term public and private cooperation.

scholarly journals Econometric models for estimating current and forecast values of the level of human capital development in the Russian economy

2020 ◽  
Vol 26 (1) ◽  
pp. 52-67
Author(s):  
Nina Baranova ◽  
Sergey Larin ◽  
Evgeny Khrustalyov
Keyword(s):  
Human Capital ◽  
Economic Development ◽  
Negative Impact ◽  
Import Substitution ◽  
Econometric Models ◽  
Practical Significance ◽  
Human Capital Development ◽  
Russian Economy ◽  
Capital Development ◽  
The Impact

Studies of factors of sustainable economic development in modern conditions are highly relevant for Russia due to the constant increase and tightening of sanctions restrictions. They have a negative impact on the introduction of innovative developments and economic growth, and reduce the competitiveness of Russian enterprises and their products on world markets. Human capital can become one of the key factors for countering sanctions restrictions, improving the efficiency of economic development and gaining additional competitive advantages for domestic enterprises and the economy as a whole. Assessing the impact of human capital on the sustainable development of the economy is difficult, since it is one of the specific forms of capital. When making appropriate measurements, economic scientists rely on a number of developed theoretical methods and practical tools that support them, which allow us to obtain fairly accurate values of the human capital development index (HDI) based on statistical data. First of all, this is the current UN methodology for calculating the HDI indicator, as well as modern software systems OriginPro-8.6 and Eviews-10.0, which have sufficiently advanced functionality for performing calculations. Russia today has all the necessary prerequisites and opportunities for progressive social and economic development. However, the formation of econometric models will help to timely determine the current and forecast values of the level of human capital development for individual enterprises, industries, and the country’s economy as a whole. This paper shows the practical application of the econometric tools of all the above approaches to obtain the calculated values of the HDI indicator for different time periods and different scenarios for the development of the Russian economy. The results obtained confirmed the high practical significance of the tools used and the acceptable accuracy of the calculations. However, the current and forecast values of the level of human capital development alone will not be able to ensure the effective development of the Russian economy. On the contrary, the effective use of human capital in the implementation of import substitution strategies and national projects will allow our country to become one of the world’s leading economic development countries.

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