Western Sanctions and Russia: Impacts and BRICS Dynamics

Teszlák Maja (2025) Western Sanctions and Russia: Impacts and BRICS Dynamics. Külkereskedelmi Kar.

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Absztrakt (kivonat)

This thesis examines the multifaceted impacts of Western sanctions on Russia following its 2022 invasion of Ukraine, focusing on economic repercussions, Russia's strategic pivot toward the BRICS bloc, and the emergence of a multipolar world order. The study addresses three core questions: the effects of sanctions on Russia's financial and energy sectors, the transformation of Russia's economic relations with BRICS members, and Russia's role in a new global order amid China's rising influence. Utilizing secondary research, including economic reports, academic papers, and financial statistics, the analysis draws on economic sanctions theory and balance of power theory to evaluate Russia's resilience and geopolitical realignment.The first chapter details the economic fallout from sanctions, which targeted Russia's financial and energy sectors, freezing $300 billion in central bank reserves and slashing energy exports to Europe by 40% by 2023. This led to a 2.1% GDP decline in 2022, 20% inflation, and social strains, including professional emigration. Russia countered with financial measures, such as mandating ruble conversions for exporters and redirecting energy exports to BRICS nations, achieving 3.6% GDP growth by 2023. However, technological isolation and persistent inflation exposed vulnerabilities, indicating that while sanctions disrupted Russia's economy, they did not cripple it.The second chapter explores Russia's deepened BRICS engagement, driven by necessity post-sanctions. The BRICS bloc, representing 36% of global GDP by 2025, became a critical alternative market, with intra-bloc trade rising to $6.5 trillion by 2024. Russia emerged as a key energy supplier, with 38% of BRICS' energy exports, bolstered by initiatives like BRICS Pay and the Grain Exchange. The Shanghai Cooperation Organization (SCO) complemented this shift, enhancing security and economic ties. However, Russia's growing reliance on China, which dominates 60% of its intra-bloc trade, risks creating an asymmetrical partnership, while internal BRICS tensions, such as India-China rivalries, challenge cohesion.The third chapter situates these developments within an emerging multipolar world order, where BRICS challenges Western dominance. The G7's global GDP share dropped to 30% by 2024, while BRICS+ reached 35%, driven by China's $19 trillion economy and India's rapid growth. Russia's energy and military contributions, alongside China's Belt and Road Initiative, position BRICS as a counterweight to Western institutions like the IMF and NATO. Yet, Russia's role is constrained by demographic decline, technological lags, and the Ukraine conflict, with China overshadowing its influence.The findings support the hypothesis that Russia's strengthened BRICS ties, spurred by sanctions, are eroding Western influence, fostering a more inclusive global order. However, challenges like Russia's China dependency and BRICS' internal divisions suggest a competitive rather than harmonious multipolar future. This study calls for further research into post-2025 BRICS expansion and comparative analyses of global blocs to deepen understanding of these dynamics.

Intézmény

Budapesti Gazdasági Egyetem

Kar

Külkereskedelmi Kar

Tanszék

Nemzetközi Gazdaságtan Tanszék

Tudományterület/tudományág

NEM RÉSZLETEZETT

Szak

Nemzetközi gazdálkodás

Mű típusa:	diplomadolgozat (NEM RÉSZLETEZETT)
Kulcsszavak:	BRICS országok, háború, Oroszország, szankciók, Ukrajna
SWORD Depositor:	User Archive
Felhasználói azonosító szám (ID):	User Archive
Rekord készítés dátuma:	2025. Okt. 27. 14:31
Utolsó módosítás:	2025. Okt. 27. 14:31

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