QUANTIFIED AND EXPERT ASSESSMENT OF THE EFFECTIVENESS OF INTERNATIONAL FINANCIAL SANCTIONS AGAINST RUSSIA
Authors:   Taras Shevchenko National University of Kyiv, Kyiv, Ukraine, KUZIOMA Olena , Nagachevska T. ,   Taras Shevchenko National University of Kyiv, Kyiv, Ukraine, Bogachuk O. ,   Deloitte & Touche Ukraine LLC, Kyiv, Ukraine
Published: March 2024

Background. The full-scale military aggression of the russian federation against Ukraine has caused significant human, material, and economic losses to Ukraine. Therefore, defeating the aggressor is a task not only for Ukraine but also for the entire world community. In this regard, international economic sanctions should exert pressure and limit russia's financial capabilities to incentivize it to stop a full-scale war. The object of research is international economic relations in the context of financial sanctions, the subject of research is the effectiveness of international financial sanctions against russia. Methods. Generalization, analysis, and synthesis – to formulate the author's definition of the category "international financial sanctions", deduction and induction, abstraction, and concretization – when selecting indicators and their application to characterize the state of development of the financial system of the russian federation, statistical method – to analyze the selected indicators, integration – to develop the author's indicator for assessing the state of the Russian financial market, data extrapolation – to identify trends and forecast changes in the analyzed indicators; methods of economics Results. The author's interpretation of the category "international financial sanctions" is given as restrictive measures for the movement of capital imposed by the government of a particular country (or countries) or an authorized international organization against legal entities and individuals, organized groups of persons of another state to force it to change its current policy or cease certain actions to achieve the goals set by the sanctioners. Quantified and expert assessment of the effectiveness of international sanctions on the financial market of the russian federation was carried out. For the quantified assessment of the effectiveness of anti-russian financial sanctions the author's composite indicator of the state of the financial system of the russian federation, calculated on the basis of such parameters as the assessment by economic entities of the business climate, access to credit, investment activity, the sufficiency of international currency reserves and the number of banking operations. Conclusions. Based on the quantitative and expert assessment, the author reveals the ineffectiveness of certain sanctions and suggests ways to strengthen the impact of the negative sanctions on russia to stop the full-scale aggression against Ukraine, in particular, confiscation of frozen international reserves of the russian federation in favor of Ukraine and payment of reparations; a ban on international transfers via SWIFT for all russian banks; expansion of restrictions for russian companies on international financial transactions and portfolio investment; taxation of dividends received from russian companies and restrictions on the payment of dividends to russian investors; increased pressure on the remaining foreign companies and banks to leave the russian market as soon as possible; companies from developed countries to include information on cooperation with russia in their financial statements; application of stricter secondary sanctions.