Russia and Sanctions: The Transformational Domestic and International Effects of Unilateral Restrictive Measures

Abstract

Abstract Most studies of the US, EU and Ukraine’s sanctions against Russia and Russian counter sanctions focus on their immediate and intended effects and apply these to make judgements about their efficacy. However, the complex consequences of sanctions go far beyond the target countries’ immediate reactions, as sanctions have positive and negative spillover effects that are rarely acknowledged in official discourse, which focuses on issues of the sanction regimes’ legitimacy and effectiveness. Vulnerability to sanctions leads target countries to reposition their domestic and international priorities. This article will examine three critical ‘collateral effects’ of Western sanctions and Russian counter sanctions. First, they serve as a catalyst for Moscow’s efforts to diversify economic relationship through international projects such as the EAEU, BRICS, and the “Pivot to the East.” Second, they have triggered more risk-sensitive policies in the provision of national economic security, particularly when it comes to finance. Finally, they serve as a transformational tool for national development strategies both at the industrial and regional levels.