Sanctions risks and regional development: Russian case
Economic sanctions and countersanctions are expanding worldwide, posing spatially heterogeneous threats to most countries. The study aims to develop and test a methodology for assessing regional exposure to sanctions risks using Russian data. The share of foreign trade with the countries that introd...
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Immanuel Kant Baltic Federal University
2024
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ftdoajarticles:oai:doaj.org/article:7aff328e7de048d5af16213f144c196c 2024-09-15T17:54:47+00:00 Sanctions risks and regional development: Russian case Zemtsov S. P. 2024-01-01T00:00:00Z https://doi.org/10.5922/2079-8555-2024-1-2 https://doaj.org/article/7aff328e7de048d5af16213f144c196c EN eng Immanuel Kant Baltic Federal University https://balticregion.kantiana.ru/en/jour/5526/47115/ https://doaj.org/toc/2079-8555 https://doaj.org/toc/2310-0524 doi:10.5922/2079-8555-2024-1-2 2079-8555 2310-0524 https://doaj.org/article/7aff328e7de048d5af16213f144c196c Baltic Region, Vol 16, Iss 1, Pp 23-45 (2024) sanctions russian regions foreign trade economic development import dependence exit of foreign companies economic security resilience Regional economics. Space in economics HT388 article 2024 ftdoajarticles https://doi.org/10.5922/2079-8555-2024-1-2 2024-08-05T17:49:23Z Economic sanctions and countersanctions are expanding worldwide, posing spatially heterogeneous threats to most countries. The study aims to develop and test a methodology for assessing regional exposure to sanctions risks using Russian data. The share of foreign trade with the countries that introduced restrictions can be used to evaluate the exposure to new trade barriers. In several cases, this share exceeded 50 %, necessitating a rapid reorientation of product flows in Nenets, Khanty-Mansiysk Autonomous Areas, Komi, and Murmansk region. The Kaliningrad, Kaluga, and Leningrad regions exhibit high import dependence in the production sector, particularly in the automotive industry, due to their active involvement in global supply chains. Sanctions against large legal entities created risks for the stability of regional economies but the increase in demand for domestic products offset this impact. Foreign enterprises exiting the market posed risks of disrupting production chains but also provided opportunities for local business development. Before some countries introduced sanctions, their companies had held more than 20 % of the market share in Kaluga, Moscow region, and the city of Moscow. However, the share of foreign firms that announced complete withdrawal exceeded 5 % of the market only in the Komi, Samara, Leningrad, and Moscow regions. An integral index of exposure was proposed based on the mentioned indicators. Its value is lower for the regions with a more diversified economy and foreign trade. The greatest risks were observed in the closely connected to the European Union northwestern territories of Russia: Karelia, Komi, Kaliningrad, Leningrad, and Arkhangelsk regions. In 2022, regions with a high index value were more likely to experience a decline in economic activity, but in 2023, this impact was less explicit due to economic adaptation and transformation. Based on the results of the study, some recommendations can be formulated. Article in Journal/Newspaper Arkhangelsk karelia* khanty nenets Directory of Open Access Journals: DOAJ Articles Baltic Region 16 1 23 45 |
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Open Polar |
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Directory of Open Access Journals: DOAJ Articles |
op_collection_id |
ftdoajarticles |
language |
English |
topic |
sanctions russian regions foreign trade economic development import dependence exit of foreign companies economic security resilience Regional economics. Space in economics HT388 |
spellingShingle |
sanctions russian regions foreign trade economic development import dependence exit of foreign companies economic security resilience Regional economics. Space in economics HT388 Zemtsov S. P. Sanctions risks and regional development: Russian case |
topic_facet |
sanctions russian regions foreign trade economic development import dependence exit of foreign companies economic security resilience Regional economics. Space in economics HT388 |
description |
Economic sanctions and countersanctions are expanding worldwide, posing spatially heterogeneous threats to most countries. The study aims to develop and test a methodology for assessing regional exposure to sanctions risks using Russian data. The share of foreign trade with the countries that introduced restrictions can be used to evaluate the exposure to new trade barriers. In several cases, this share exceeded 50 %, necessitating a rapid reorientation of product flows in Nenets, Khanty-Mansiysk Autonomous Areas, Komi, and Murmansk region. The Kaliningrad, Kaluga, and Leningrad regions exhibit high import dependence in the production sector, particularly in the automotive industry, due to their active involvement in global supply chains. Sanctions against large legal entities created risks for the stability of regional economies but the increase in demand for domestic products offset this impact. Foreign enterprises exiting the market posed risks of disrupting production chains but also provided opportunities for local business development. Before some countries introduced sanctions, their companies had held more than 20 % of the market share in Kaluga, Moscow region, and the city of Moscow. However, the share of foreign firms that announced complete withdrawal exceeded 5 % of the market only in the Komi, Samara, Leningrad, and Moscow regions. An integral index of exposure was proposed based on the mentioned indicators. Its value is lower for the regions with a more diversified economy and foreign trade. The greatest risks were observed in the closely connected to the European Union northwestern territories of Russia: Karelia, Komi, Kaliningrad, Leningrad, and Arkhangelsk regions. In 2022, regions with a high index value were more likely to experience a decline in economic activity, but in 2023, this impact was less explicit due to economic adaptation and transformation. Based on the results of the study, some recommendations can be formulated. |
format |
Article in Journal/Newspaper |
author |
Zemtsov S. P. |
author_facet |
Zemtsov S. P. |
author_sort |
Zemtsov S. P. |
title |
Sanctions risks and regional development: Russian case |
title_short |
Sanctions risks and regional development: Russian case |
title_full |
Sanctions risks and regional development: Russian case |
title_fullStr |
Sanctions risks and regional development: Russian case |
title_full_unstemmed |
Sanctions risks and regional development: Russian case |
title_sort |
sanctions risks and regional development: russian case |
publisher |
Immanuel Kant Baltic Federal University |
publishDate |
2024 |
url |
https://doi.org/10.5922/2079-8555-2024-1-2 https://doaj.org/article/7aff328e7de048d5af16213f144c196c |
genre |
Arkhangelsk karelia* khanty nenets |
genre_facet |
Arkhangelsk karelia* khanty nenets |
op_source |
Baltic Region, Vol 16, Iss 1, Pp 23-45 (2024) |
op_relation |
https://balticregion.kantiana.ru/en/jour/5526/47115/ https://doaj.org/toc/2079-8555 https://doaj.org/toc/2310-0524 doi:10.5922/2079-8555-2024-1-2 2079-8555 2310-0524 https://doaj.org/article/7aff328e7de048d5af16213f144c196c |
op_doi |
https://doi.org/10.5922/2079-8555-2024-1-2 |
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Baltic Region |
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16 |
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