Implications of the EU Sanctions for the Resilience of the Russian Financial System under the Current Geopolitical Environment
The military invasion of Ukraine by the Russian Federation turned into Europe's most prominent military conflict since World War II, severely modifying the economic and financial relations between the European Union (EU) and the Russian Federation. Since the beginning of the Russian aggression,...
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| Format: | Article |
| Language: | English |
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European Institute of Romania
2023-06-01
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| Series: | Romanian Journal of European Affairs |
| Subjects: | |
| Online Access: | http://rjea.ier.gov.ro/wp-content/uploads/2023/06/RJEA-vol.-23-no.-1-Jun-2023-art.-2.pdf |
| _version_ | 1797787787262427136 |
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| author | Dorina Clichici Andreea-Emanuela Drăgoi |
| author_facet | Dorina Clichici Andreea-Emanuela Drăgoi |
| author_sort | Dorina Clichici |
| collection | DOAJ |
| description | The military invasion of Ukraine by the Russian Federation turned into Europe's most prominent military conflict since World War II, severely modifying the economic and financial relations between the European Union (EU) and the Russian Federation. Since the beginning of the Russian aggression, the EU has imposed a large number of sanctions against the Russian Federation, which aimed at limiting Russian resources to finance the war and restricting its access to European financial markets. In this context, the paper aims to investigate the impact of the EU sanctions on the Russian financial system by assessing the banking system’s resilience to imposed restrictions. The findings highlight that, in the initial phase, the Russian financial system has been significantly disrupted by the EU sanctions, facing a collapse of the rouble, the most significant drop in the history of Moscow's stock market, a banking liquidity crisis, but also a contraction in lending and in the interest rate spread. In a later phase, due to largescale countermeasures taken by the Russian authorities and the Bank of Russia, it has been stabilized, reflecting its high level of resilience to risks. |
| first_indexed | 2024-03-13T01:26:46Z |
| format | Article |
| id | doaj.art-04eaca81bdae4030857280442d32a70c |
| institution | Directory Open Access Journal |
| issn | 1582-8271 1841-4273 |
| language | English |
| last_indexed | 2024-03-13T01:26:46Z |
| publishDate | 2023-06-01 |
| publisher | European Institute of Romania |
| record_format | Article |
| series | Romanian Journal of European Affairs |
| spelling | doaj.art-04eaca81bdae4030857280442d32a70c2023-07-04T11:38:45ZengEuropean Institute of RomaniaRomanian Journal of European Affairs1582-82711841-42732023-06-012311833Implications of the EU Sanctions for the Resilience of the Russian Financial System under the Current Geopolitical EnvironmentDorina Clichici0Andreea-Emanuela Drăgoi1Senior Researcher at the Department of Economic Integration and Financial Markets of the Institute for World EconomySenior Researcher at the Center for European Projects of the Institute for World EconomyThe military invasion of Ukraine by the Russian Federation turned into Europe's most prominent military conflict since World War II, severely modifying the economic and financial relations between the European Union (EU) and the Russian Federation. Since the beginning of the Russian aggression, the EU has imposed a large number of sanctions against the Russian Federation, which aimed at limiting Russian resources to finance the war and restricting its access to European financial markets. In this context, the paper aims to investigate the impact of the EU sanctions on the Russian financial system by assessing the banking system’s resilience to imposed restrictions. The findings highlight that, in the initial phase, the Russian financial system has been significantly disrupted by the EU sanctions, facing a collapse of the rouble, the most significant drop in the history of Moscow's stock market, a banking liquidity crisis, but also a contraction in lending and in the interest rate spread. In a later phase, due to largescale countermeasures taken by the Russian authorities and the Bank of Russia, it has been stabilized, reflecting its high level of resilience to risks. http://rjea.ier.gov.ro/wp-content/uploads/2023/06/RJEA-vol.-23-no.-1-Jun-2023-art.-2.pdfeu sanctionsrussian federationbanking systembanking liquidity crisiscountermeasures |
| spellingShingle | Dorina Clichici Andreea-Emanuela Drăgoi Implications of the EU Sanctions for the Resilience of the Russian Financial System under the Current Geopolitical Environment Romanian Journal of European Affairs eu sanctions russian federation banking system banking liquidity crisis countermeasures |
| title | Implications of the EU Sanctions for the Resilience of the Russian Financial System under the Current Geopolitical Environment |
| title_full | Implications of the EU Sanctions for the Resilience of the Russian Financial System under the Current Geopolitical Environment |
| title_fullStr | Implications of the EU Sanctions for the Resilience of the Russian Financial System under the Current Geopolitical Environment |
| title_full_unstemmed | Implications of the EU Sanctions for the Resilience of the Russian Financial System under the Current Geopolitical Environment |
| title_short | Implications of the EU Sanctions for the Resilience of the Russian Financial System under the Current Geopolitical Environment |
| title_sort | implications of the eu sanctions for the resilience of the russian financial system under the current geopolitical environment |
| topic | eu sanctions russian federation banking system banking liquidity crisis countermeasures |
| url | http://rjea.ier.gov.ro/wp-content/uploads/2023/06/RJEA-vol.-23-no.-1-Jun-2023-art.-2.pdf |
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