SOME ASPECTS OF THE ECONOMIC WAR AGAINST RUSSIA
SOME ASPECTS OF THE ECONOMIC WAR AGAINST RUSSIA

Summary/Abstract: After the collapse of the USSR in 1991, Russia went through a deep crisis, but the rise in oil and gas prices in the late 1990s enabled economic recovery. Energy products accounted for about 70% of exports, and the European Union was the main partner, which brought Russia influence but also vulnerability. The annexation of Crimea in 2014 led to sanctions that hit the energy sector, banking and the military industry. Russia has responded with a policy of “import in exchange” and a turn to China, India and Turkey. At the same time, agriculture boomed, and Russia became the world’s leading exporter of wheat. The post-2020 COVID-19 pandemic has further altered trade patterns. The fall in oil and gas prices in 2020 hit the Russian budget hard, but Moscow has used the crisis to accelerate the redirection of trade to Asia and boost domestic production. The escalation of the conflict in Ukraine in February 2022 marked the beginning of the most extensive package of economic sanctions in modern history. The European Union, the United States and their allies have imposed restrictions on the financial sector, energy, transportation, technology and individual assets. The exclusion of Russian banks from the SWIFT system, the freezing of foreign exchange reserves and the restriction of access to credit markets were a direct blow to the country’s financial stability. The energy sector has been at the center of the conflict: the European Union has banned offshore oil imports and begun to rapidly develop LNG infrastructure, while Russia has redirected exports to China and India, with significant discounts. The economic war against Russia has shown that sanctions have a double effect – they weaken the Russian economy, but at the same time cause disruption in the global markets for energy, food and raw materials. Rising energy prices and inflation have hit many European countries, while Russia has continued to generate revenues from fossil fuel exports, which has allowed it to finance military operations. These dynamics indicate the limited effectiveness of economic measures when faced with a country that has key resources of global importance. Russia has responded with its own economic protection measures, boosting domestic production and seeking new partners in Asia and Africa. This process has accelerated geopolitical change, creating new economic blocs and redefining the global trade landscape. At the same time, the sanctions have prompted Russia to develop alternative payment systems and increase the use of national currencies in international trade. The U.S. and Israeli attack on Iran is changing the geostrategic situation, as the disabling of gas and oil capacities in the Middle East region puts Russia in a new position. Global oil and gas processing capacity has been significantly reduced, and the blockade of the Strait of Ormun is worsening the situation in the global oil and gas market. The paper analyzes the historical context of Russia’s trade relations, the impact of the economic war on the state of the economy, newly established partnerships and energy policy. Particular attention was paid to the wider implications of the energy situation for the international order and to the question of whether economic pressures can to some extent replace traditional forms of political competition and ultimately warfare. The conclusion points out that Russia’s trade relations are not only an energy and economic issue, but also an instrument of geopolitics, where energy sources become a means of achieving strategic goals.

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