Impact of Economic Sanctions on Foreign Direct Investment Flows Unurmaa.D, Batchimeg.B
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Abstract
Global foreign direct investment (FDI) flows have gradually recovered following the Covid-19 pandemic. However, the impact of the international business and investment environment on FDI has been heightened by the crisis in Ukraine. The United States and the European Union (EU) have implemented stringent sanctions in an effort to swiftly halt Russia's military operations. These sanctions, imposed by the international community, are designed to exert pressure on the economies of Russia and its allies in order to bring an end to the conflict.
The most impactful sanctions have been those targeting Russia's financial and energy sectors, resulting in immediate negative consequences for the country. In response, Russia has implemented retaliatory sanctions aimed at asserting its independence from the countries imposing sanctions.
In this article, we will analyze the changes in Russian FDI, with a particular focus on the effects of financial, energy, and trade sanctions.
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