Western sanctions against Russia and their impact on Trade Finance

Sanctions (especially economic ones) have always been a popular tool of foreign policy. They are capable of bringing about a desirable change in the behaviour of a delinquent or renegade state, but at the same time often fail to achieve their goals, while leaving costs for both the states engaged into the conflict as well as their allies. These diplomatic and economic costs contribute to negative consequences for international trade, which is highly dependent on the provision of financial resources necessary for the conduction of trade transactions. Consequently, economic sanctions have tremendous costs for international trade in general and for trade finance operations in particular. This book aims at the evaluation of the impact of Western sanctions on trade finance operations in the Russian Federation. Firstly, the fundamentals of a sanction theory are addressed and the analysis of sanctions and counter-sanctions regimes imposed by the West and Russia is done. Secondly, an overview of trade finance practices and instruments used in international trade is provided. Finally, costs of the imposed sanctions and their impact on trade finance operations in Russia are highlighted.