RAN: The Western sanctions policy has fallen into the “trap of a big country”
Izvestia, citing an article by Daria Ushkalova, head of the Center for Research on International Macroeconomics and Foreign Economic Relations of the Institute of Economics of the Russian Academy of Sciences (RAN), explained the resilience of the Russian Federation to Western sanctions as a “trap of a big country.”
According to Ushkalova, if a country occupies a significant share in any market, then supply restrictions or similar expectations lead to rising prices that compensate for the decrease in volumes .
“Under such conditions, the formal effectiveness of the imposed restrictions completely contradicts the strategic effectiveness. It is to create conditions for a decrease in export revenues,” the article notes.
Among other things, the simple restrictions introduced led to the opposite effect, export revenues grew, and world prices rose. Because of this, the European Union had to adjust restrictions in order to reduce not only the supplies themselves, but also income.
Associate Professor of the Department of Corporate Governance and Innovation at the Russian Economic University. G.V. Plekhanov Maxim Maximov added that all attempts to restrict a key exporter lead to destabilization of the market.