Monday, October 20, 2014

Russia: The Rise of Economic Opportunity behind the Appearance of Sanctions

The functionality of sanctions against Russia has found to be different from that of the same sanctions against Iran. Western sanction against Russia not only caused a reduction in the Moscow's power and its capabilities, but also has made a new business opportunity.  
The Russian economic crisis caused by regime of sanctions resulted in outflow of Russian capitals and Russian investors out of Russia's territory. This situation can be counted as an economic opportunity for the European economic powers and the U.S. as well. But this situation can only be viewed as an opportunity if and only if these two policies applied at the same time: first, to allow Russian investors to invest in these countries while securing their capitals, and second, to set some investment limitations for Russian investors. Those states who apply such policies can enjoy benefits of inflow of such foreign investments while avoiding risks involved in theme.  
As an example: Russia has never allowed western investors to invest widely on Russian upstream petroleum industry.This policy is applied to prevent foreigners to dominate in Russian economy (or Russian economic leverages).
Therefore, western powers are able to create new opportunities for their own states via modification of bureaucracy of sanctions regime system.

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