Authors

Eugene Nivorozhkin¹;  ¹ SSEES, University College London, UK

Discussion

We investigate the strategic responses and resilience of Russian corporations under international sanctions since 2014, through an analysis of financial data from 311 public companies from 2005 to 2022. Our study utilises a mixed-effects model to identify diverse sectoral responses and instances of enhanced performance despite geopolitical tensions. We frame our analysis within the context of a bifurcated global economy, highlighting how Russian firms navigate a world increasingly divided between Western market-oriented economies and authoritarian regimes. The findings challenge
the prevailing view of sanctions as predominantly deleterious, revealing a complex interplay between sanctions and corporate strategies that often stimulates strategic innovation and adaptation. This study advances the dynamic capabilities framework by illustrating Russian firms’ abilities to sense changes, seize opportunities, and reconfigure resources in response to sanctions. By providing empirical evidence of corporate adaptability in a geopolitically sensitive environment, this research contributes to the discourse on economic sanctions, offering insights for policymakers and suggesting a need to reconsider the effectiveness of sanctions as a policy tool in a bifurcated world.