Alieva Z.M., Alieva U.T. The impact of sanctionson the economy of the Russian Federation

Abstract

The article is devoted to identifying the specifics of the impact of sanctions on the economy of the Russian Federation. The article reflects the sectors of the economy of the Russian Federation that have been most affected by economic sanctions. The article analyzes the dynamics of foreign trade of the Russian Federation, the level of GDP and its growth rates, and the real disposable income of the population of the Russian Federation. The article pays special attention to the analysis of the sectors of the economy of the Russian Federation that have felt the most severe impact of economic sanctions. First of all, these are the oil and gas sectors, which traditionally occupy leading positions in the country’s exports. Restrictions on the supply of technologies and equipment for oil production imposed by Western countries have significantly complicated the implementation of a number of major projects and slowed down the development of the industry. At the same time, under the conditions of sanctions, Russian companies began to actively look for new partners, in particular, in Asian countries, which partially compensated for losses in Western markets. The banking system has become another affected industry. Western sanctions have restricted Russian banks’ access to international credit markets and payment systems, which has led to an increase in borrowing costs and exacerbated the shortage of foreign currency liquidity. This, in turn, affected lending to the real sector of the economy and limited opportunities for investment growth. As a result, the country’s financial system has faced new challenges that require adaptation and restructuring.