Sanctions After 2014

After annexing Crimea in 2014, Russia faced Western sanctions and an oil price drop that caused a recession, and it responded with import substitution.

Sanctions have shaped Russia for a decade.

2014 shocks

Western sanctions limited borrowing for some firms, and oil prices fell.

Rouble fall

The rouble lost a large part of its value.

Import substitution

Russia promoted domestic production, especially in farming.

Result

Agriculture grew, and Russia became the world’s top wheat exporter.

A food ban

Russia banned some Western food imports, boosting local producers.

Believing sanctions have no economic effect

They impose costs and change trade patterns.

Key takeaways

Sanctions began in 2014.
The rouble fell.
Import substitution followed.
Russia became a top wheat exporter.