Measures to Neutralize the Consequences of Sanctions Against Russia at the Federal and Regional Levels

Abstract

The Russian ruble depreciated sharply in 2014 after the US embargo was imposed, in just one day it lost 19% of its value, which was the biggest daily drop in the previous 16 years. Inflation has reached a three-year high. The reasons for the sharp decline in the indicators of the Russian economy were the factors of a sharp drop in oil prices, sanctions against the country and insufficient effective management. The article discusses Russia’s anti-sanctions actions at the federal and regional levels of government. It is concluded that the following measures have become the most effective in responding to sanctions: the introduction of import sanctions against countries subject to the embargo, reducing dependence on the dollar and euro in foreign trade (de-dollarization) by concluding bilateral currency agreements, changing export directions, introducing a national payment system, adopting import substitution plans within federal and regional policies, as well as a plan to support firms affected by sanctions. It is noted that the sanctions posed threats not only to the economy of Russia and its regions, but also to the economies of European countries and, ultimately, to the stability of the global financial system.