How Russia’s adaptive tactics in the face of Western sanctions have kept the economy functioning

This paper offers an in-depth exploration of the European Union's robust sanctions framework against Russia, catalyzed by the annexation of Crimea in 2014 and intensified in the wake of the 2022 invasion of Ukraine. It meticulously outlines the progressive sanctions packages, which range from targeted asset freezes and travel bans on key political figures to sweeping restrictions on critical sectors, including finance, energy, and defense. These measures reflect the EU's firm commitment to uphold international law and safeguard Ukraine's sovereignty.

The analysis reveals the profound economic repercussions for Russia—plummeting GDP, soaring inflation, and a steep decline in foreign direct investment—while also highlighting Russia's adaptive strategies, such as diversifying trade partnerships and establishing alternative financial systems. This interplay underscores the intricate challenges of enforcing sanctions effectively in an evolving geopolitical landscape. While the analysis also highlights the fdact, that sanctions have undeniably had an impact – sometimes severe – they have not brought about a sea change in Russian actions or policy. In fact they have triggered a new agility and resilience in parts of the Russian economy.

The analysis also examines how Hungary's cautious approach to EU sanctions reflects its strategic balancing act between adhering to European solidarity and safeguarding its national economic and energy interests.

Ultimately, this study illuminates the complexities of economic sanctions as a tool of foreign policy and their far-reaching implications for Russia's economic resilience and global standing.