Dr Aleksei Zakharov
Introduction
February 24, 2022, will be a date to remember in Russia’s history, although it is not yet clear how it will be treated in the history books. President Vladimir Putin’s decision to send troops to Ukrainian territory, dubbed as a “special military operation”, provoked a war between Russia and Ukraine, increased (even if not direct) confrontation between Russia and the West, and a severe military and humanitarian crisis in Eastern Europe, with no clear path for resolution. As a result of this decision, Moscow has found itself isolated and desperate to reorient its policies and exports from the West to the East.
Despite gloomy forecasts by many analysts, the Russian economy has managed to ride out the unprecedented sanctions and the exodus of large international companies. Yet, the sanctions will have a long-term effect, disrupting Russia’s access to advanced technologies and gradually eroding its capacities across various industries. In effect, the restrictions have already challenged Moscow’s attempt to initiate another “pivot to the East”, with foreign transactions facing various hurdles and globalized businesses from across Asia and the Middle East hesitating to connect with Russian companies.
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