The Impact of International Economic Sanctions on Industrial Output of the Russian Federation

Abstract

Since 2014, a number of foreign countries and interstate associations have been imposing financial and economic sanctions on the Russian Federation. The official goal of the sanctions was to force Russia to change its foreign policy. The sanctions were aimed at key economic sectors: energy, defense, mechanical engineering, financial sector. Imposed sanctions were to cause economic slowdown in Russia and worsen several macroeconomic performance indicators, such as inflation, employment, foreign trade balance, net capital inflow, industrial output etc. The article seeks to analyze the impact of sanctions on Russian industry, therefore it contains the definition and classification of sanctions imposed on Russia, characterizes Russian pre-sanctions industrial production, and evaluates the state of industry after the sanctions were introduced. The conclusion on the effectiveness of sanctions will be made based on comparison of indicators of Russian industrial output in pre-and post-sanctions period.