The Impact of Sanction Restrictions on the Financial and Banking Sectors of the Russian Federation

Mikhail E. Kosov (), Anton P. Platonov (), Stanislav B. Reshetnikov () and Tatiana K. Chernysheva ()
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Mikhail E. Kosov: Financial University under the Government of the Russian Federation, Moscow, Russian Federation; Plekhanov Russian University of Economics, Moscow, Russian Federation
Anton P. Platonov: Plekhanov Russian University of Economics, Moscow, Russian Federation
Stanislav B. Reshetnikov: Financial University under the Government of the Russian Federation, Moscow, Russian Federation
Tatiana K. Chernysheva: Financial University under the Government of the Russian Federation, Moscow, Russian Federation; Plekhanov Russian University of Economics, Moscow, Russian Federation

Finansovyj žhurnal — Financial Journal, 2025, issue 4, 62-82

Abstract: This paper presents a thorough analysis of the effects of international sanctions on the financial and banking sectors of the Russian Federation between 2014 and 2025, with a particular focus on the implications for the domestic market. The paper highlights key areas of the impact, including disconnection from the SWIFT system, freezing of Russian banks’ assets, denying access to international payment systems, and restrictions on cross-border transactions. Based on statistical data, the paper reveals changes in the structure of bank assets, the evolving role of the MIR payment system, increased loan rates, and changes in consumer behavior. It also examines the consequences of sanctions for the currency market, such as volatility of the ruble exchange rate, the increase in key interest rates, the decrease in the liquid component part of the National Welfare Fund, and the growth of household debt. Particular attention is paid to the risks of economic security erosion, including impediments to the free flow of cross-border payments, the blocking of gold and currency reserves, and complications in international settlements even with friendly countries. A system of strategic goals is proposed to enhance stability of the financial system, including the development of domestic sources of funds, technological independence, and a new framework for international settlements. The material is supported by a rich set of analytical and visual tools and can serve as a basis for developing anti-crisis measures and long-term planning documents for the Russian Federation.

Keywords: sanctions pressure; banking system; currency market; financial stability; financial system; National Welfare Fund; SWIFT system (search for similar items in EconPapers)
JEL-codes: G18 G32 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:fru:finjrn:250404:p:62-82

DOI: 10.31107/2075-1990-2025-4-62-82

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