This essay is about the Russia’s economic reaction to confront Western sanctions.
The first sanctions because of Russia’s role in the Ukraine crisis were imposed in March 2014 by the US and the EU in a coordinated manner. This Essay wants to evaluate the Russian counteractions to these Western measures. Therefor the Russian countersanctions will be analyzed briefly, however the focus will be on domestic policy shifts in the Russian economic policy concerning the Finance Sector, the Energy and Defense Industry as the general economy. The essay will conclude with a categorization of the applied measures, a summary, and an outlook.
Table of Contents
1. Introduction
2. Analysis of Russian Counteractions
2.1 Energy Policy
2.2 Defense Industry
2.3 Financial Sector
2.4 General Economy
3. Characterization and Categorization of Responses
3.1 Securitization of Economic Policy
3.2 Import Substitution
3.3 Diversification of Foreign Economic Relations
4. Conclusion and Outlook
Objectives and Topics
This essay evaluates the Russian Federation's strategic counteractions to Western economic sanctions imposed since 2014, focusing on how these measures prompted domestic policy shifts to enhance economic self-reliance.
- Analysis of economic policy shifts in the energy, defense, and financial sectors.
- The role of the "securitization" of the economy as a state response strategy.
- Implementation of import substitution programs and public procurement modifications.
- The geopolitical and geoeconomical shift toward non-Western markets.
- Evaluation of long-term economic independence vs. international isolation.
Excerpt from the Book
Securitization of Economic Policy
In all of the four examined economic industries above you can see a certain development to a so called securitization of economic policy. This means that the Russian economic policy was conducted by the leitmotif of a possible threat of the Russian economy by the Western allies. This securitization method was of course most present in the defense industry, but also reached the financial, energy and general economy. For example there were discussions in the Russian political sphere about the possible security impacts of Russia’s foreign exchange reserves, the import of agricultural products, machinery and technological supply. The chosen aim in these discussions was more and more the economic self-reliance of Russia and a degradation of the integration of the Russian economy in the global economy for security reasons. Those policy shifts were visible in the National Security Strategy 2015 and the Economic Security Strategy 2017.
Chapter Summary
Introduction: This chapter outlines the development of Western sanctions against Russia since 2014 and defines the essay's focus on analyzing Russian domestic economic counteractions.
Analysis of Russian Counteractions: This section details specific policy shifts within the energy, defense, financial, and general economic sectors, highlighting moves toward non-Western cooperation and increased state control.
Characterization and Categorization of Responses: This chapter synthesizes the government's reactions into three distinct methods: securitization, import substitution, and the diversification of trade relations.
Conclusion and Outlook: The final chapter summarizes the findings and argues that while these measures have increased Russian independence, they also raise concerns regarding long-term economic and political isolation.
Keywords
Western sanctions, Russia, economic policy, securitization, import substitution, trade diversification, energy industry, defense industry, financial sector, foreign economic relations, geoeconomics, national security, state-controlled capital, economic self-reliance, non-Western markets.
Frequently Asked Questions
What is the fundamental focus of this academic work?
The work focuses on evaluating how the Russian Federation has responded to Western economic sanctions through domestic policy shifts and strategic counteractions across various economic sectors.
What are the primary thematic fields covered in the analysis?
The study covers the energy sector, the defense industry, the financial system, and the broader general economy, alongside the conceptual strategies of securitization and import substitution.
What is the primary research goal of this essay?
The goal is to analyze and categorize Russian counteractions to sanctions to understand how the Russian state has pursued economic self-reliance and navigated international pressure.
Which scientific methodology is applied?
The essay utilizes a comparative and analytical approach, building upon the study of Connolly to analyze key sectors impacted by sanctions separately before categorizing the government's response methods.
What specific topics are addressed in the main body?
The main body examines sector-specific interventions, such as the reduction of dollar and euro dependency in energy trading and the creation of a national electronic payment system in the financial sector.
Which keywords best characterize the research?
Key terms include Western sanctions, securitization of economic policy, import substitution, and the diversification of foreign economic relations towards Eurasian partners.
How does the Russian government protect its defense industry?
The government secures the military-industrial complex through substantial resource transfers, funding substitution programs for Western technological components, and fostering cooperation with non-Western partners like India and China.
What is the significance of the "localization" buzzword mentioned in the text?
Localization refers to the strategy of encouraging international companies to settle within the Russian Federation to bolster manufacturing capabilities in sectors where domestic companies lack competitiveness.
- Quote paper
- Florian Hertle (Author), 2020, Russia’s economic reaction to confront Western sanctions, Munich, GRIN Verlag, https://www.grin.com/document/1000717
