Russia’s Potential to Confront Sanctions in International Trade

Abstract

Severe anti-Russian sanctions imposed by the United States and obediently following in their footsteps Western countries complicated international trade in early 2022 resulting in slower exports of many commodities and the surge in prices for energy and many other commodities. The nature of the sanctions was analyzed, and the most urgent issue now is to find ways to circumvent such decisions in order to keep the global economy growing. In particular, the article explores possible ways to circumvent trade restrictions in the sale and purchase of sanctioned goods. As a result, Russia started to redirect its energy exports to the countries of South and Southeast Asia, and Western countries faced a shortage of hydrocarbons causing the rise in energy prices and contributing to higher inflation. The sanctions prompted exporters and banks to develop new means of payment, in particular cybercurrencies, and new payment and settlement schemes. Structural changes in the management of companies subject to sanctions are being observed; new schemes for the supply and transportation of goods through intermediary re-export companies are being tested. The economic conditions in the countries that have imposed sanctions are deteriorating and social tensions are growing.