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The impact of sanctions on economic growth: the case of the Russian Federation

Author

Listed:
  • Lazizakhon Saydalieva

    (Tashkent State University of Economics)

  • Zebo Kuldasheva

    (Tashkent State University of Economics)

Abstract

This paper explores the economic impact of international sanctions imposed on the Russia, particularly after the geopolitical conflicts. Sanctions have long been used as a diplomatic tool effecting to state behaviour to restrict access to global market, limiting financial transactions and controlling the trade circulation. These economic restrictions have significantly hindered Russia’s economic growth. This paper conducts a comprehensive analysis of the effects of sanctions on key economic indicators, including Gross Domestic Product (GDP), Foreign Direct Investment (FDI), inflation, trade balance, and currency stability. Using time-series data from 1992 to 2022, the study applies the Vector Auto Regression (VAR) model within the framework of dependency theory to assess the relationship between various economic variables and Russia’s economic well-being. The results indicate that there is a negative correlation between oil prices and their impact on economic growth. However, FDI and oil prices had a negative impact on the economy when compared to other indicators like sanctions. Furthermore, it explores potential growth trajectories for the Russian economy. The article concludes with policy recommendations for both sanction-imposing countries and Russia, emphasizing the need for adaptive economic strategies, diversified trade partnerships, and diplomatic engagement to mitigate economic vulnerabilities and ensure long-term stability.

Suggested Citation

  • Lazizakhon Saydalieva & Zebo Kuldasheva, 2025. "The impact of sanctions on economic growth: the case of the Russian Federation," Medzinarodne vztahy (Journal of International Relations), Ekonomická univerzita, Fakulta medzinárodných vzťahov, vol. 23(2), pages 143-161.
    • Handle: RePEc:brv:journl:v:23:y:2025:i:2:p:143-161
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    References listed on IDEAS

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    More about this item

    Keywords

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    JEL classification:

    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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