INTERNATIONAL SANCTIONS AS AN ECONOMIC SECURITY THREAT

Hüseynova Ş., Əliyeva M.

Economic and Social Development: Book of Proceedings, pp.668-676, 2020 (Peer-Reviewed Journal)

Qısa məlumat

ABSTRACT The article reveals topical issues of influence of international economic sanctions on economic security of the state. In conditions of sanctions many countries resort to import substitution policy, and as a consequence, the economy faces sharp increases in trade barriers and find itself at the edge of the outbreak of trade wars. Risks associated with the escalation of trade barriers, however, seem to be not fully realized. In fact, they are likely to be much more serious than most experts tend to believe. And this has to do with the diversity of reasons inviting economic agents and political decision makers to support protectionist policies. Anti-Russian sanctions make it difficult for Russian banks to access foreign financial markets, which in turn restricts access of domestic firms to credit capital and provokes a decrease in investment, as well as increases the cost of servicing the foreign debt of domestic campaigns, resulting in a threat to the economic security of the state and slows down economic development. However, the regime of international sanctions opens up opportunities for import substitution policy, which may become a driver of the Russian economy development