The imposition of economic sanctions by the West on Russia, as well as the Ukrainian criss has had adverse efefcts as far as the economic growth and development in Russia is concerned (Brooks 2002). Such implications have largely affected the development and growth of businesses in the country (Connolly and Hanson 2012). This can be attributed to the fact that the ways in which the Russian government responded to sanctions from the West has put the country further from close asosication with western powers alongside their allies. This paper therefore, focuses on the effect of Western sanctions on the development of businesses in Russia.
According to the focus of sectiral asanctions regine that were intriduced in 2014, it was eviddnet that the western governments aimed at distabilizing sevceral sectors fo Russian economy, which included the financial sector, oil industry and the defence industry (Balynskaya, Rakhlis, Ritter, Pishchugina and Kiva-Khamzina 2015). Even though the sanctions were imposed in the same period, different and ununiform effects have been felt on various sectors of the countrys economy. Nonetheless, the financial sector has exprerienced the significant effect of such sanctions since they were introduced (Kolotov 2015). In spite of the sanctions, the defence industry of Russia exprenced an increasei output in 2014, which can be attributed to the growth in the demand fro defence amog different international countries. In 2014, Russia was ranked second as far as the export business of armaments was concerned following the State Armarment Programme of 2020 (Galkina and Moiseev 2016). Despite the fact that Russia beforeteh Western sanctions, had severla links and defense ties with severla countries from the West, most of the countrys arms are exported to Latin America, Africa and Asia (Basareva 2015; Kotov and Urazmetova 2014). As such, the impact of the sanctions as far as the defense industry is concerned can only be felt in the long run in a case whereby the West powers suppress the military-use technology transfers that have been common between Russia and the West.
The sanctions of the West had some degree of efect in the oil industry (Kolotov 2015). In spite of this, the produciton level of oil in Russia was not affected. Infact the prodution of oil in Russia has risen considerably to reach a daily record of 10.6 million barrels (United Nations 2014). Such scenarios can be attributed to the fact that the western sanctions were not meant to have immediate effect on the production levels of oil (Saneev 2014). In stead, the focus of the asanctions is on future production of oil in Russia, as far as the countrys new oil deposits are concerned that are hard to reach.
The finacial sector of Russia has been hard-hit by the western sanctions. The economy of the country has felt the negative impact of of the Western sanctions given that the country has not access to capital markets from the West (Lebedeva and Feiguine 2015). As such, most of the corporations in Russia have difficulties repaying their external debt since it is quite impossible for them to roll over, or even refinance their credit lines. In September 2014, the external debt from financial sector and non-financial corporate sectors were USD 610 Billion (Central Bank of Russia 2014). Such debt accounted for more than 60% of the countrys Gross Domestic Product in 2014. The implication of such case is that the current businesses will have to spent more of their earnings in debt repayment and hence no future development at all. Thus, there is a need to establish the overall effects of the western sanctions.
The primary objective of this study is to provide an in-depth analysis of the concept of Western sancions on Russia and the effect the sanctions have had in the general growth and development of the current businesses in the country. The study will also have specific objectives as enlisted below:
To find out where there is any significant relationship between the imposition of the sanctions and the success of businesses operatiosn
To establish some of the significant effects of western sanctions on current businesses in Russia?
The results and findings from this study will be very instrumental as an addition to the existing school of knowledge as far as the current state and prospects of development of businesses in russia under influence of western sanctions. The results will detail some fo the significant effects Russias sanctions by the west as well as highlight any correlation between success, growth and development of current businesses in Russia and the Western sanctions.
Kothari (2005) outlined that the research methodology refere to the collection of procedures and techniques that are applied in the course of a study to help the reseacher to collecl, analyze data in order to help in the asnwering of given research questions in realtion to a phenomenon under study. Saunders, Lewis and Thornhill (2012) defined methodology as a type of theoretical approcah that guides researchers in understanding the philosphical and theoretical assumptions that form the foudation of any given research study. Cresswell (2009) asserted that there are two types of data that any study can use; quantitative data and qualitative data. In the case of the current study, a mixed methods approach will be used whereby qualitative and quantitative data will be used to supplement one another. For the qualaitative data, questionnaires will be used to collect the data for the study. In additon, archival records such as journals and books will be used to collect quantintative data for the study in relation to the current state and prospects of development of businesses in Russia under the influence of western sanctions. Findings from the review of literature and the questionnaires will be compared to establish any correlation between the findings. The choice of the mixed methods study was informed by the need to have more reliable and valid data, and the understanding that problems encontered during qualitative data collection can be countered by quantative data.
Therefore, this chapter prsents the research design, as well as the methods to be used in the collection and analysis of collected data for the purposes of understading current state and prospects of development of businesses in russia under influence of western sanctions.
With respect to the current state and prospects of development of businesses in russia under influence of western sanctions, undestanding the study phenomenon from the aspect of what the sanctions entail to the state of the businesses in terms of development in Russia. By analysising the link between the current state of businesses in the country and the extent of the western sanctins in Russia, the study will be in a position to provide offer the necessary insight into the role of western suctions in the development of businesses in Russia. Based on this reaosn, there is a need for collection of reliable and valid data for the study. To achieve such objectives, the study will make use of descriptive research design. According to Cresswell (2009), the descriptive research has the capacity of offering a researcher the right platform to seek answers for any given research questions in a study. Similarly, Kothari (2005) observed that the desriptive research design is very efficient in relating any research questions and hypothesis to a particular societal problem.
Data Collection Methods
Data collection methods are the techniques and aproaches that a given researcher uses to obtain the required data from a given study population. In the case of the current study, the emphasis is on the current state and prospects of development of businesses in russia under the influence of western sanctions. Thus, to obtain the right type of data that can be used to achieve the goals and objectives of the study, effective and valid methods of data collection will be applied. Based on the scope of the current study, secondary and primary types of data will be used to collect the necessary data on the current state and prospects of development of businesses in russia under influence of western sanctions. Thus, journals and books will be used as sources of secondary data on the phenmenon under study. For validity of collected data, numerous secondary sources from reliable databases will be used in this case.
In addition, other methods of data collection suitable for collection of primary data will be used. Some of such methods include surveys and interviews. However, in the current study, questionniares will be used to collect data from different study subjects indentified. The questionnaires will be used to collect data on perosnal opinion, and experience as far as the current state and prospects of development of businesses in russia under influence of western sanctions is concerned. Denzin and Lincoln (2008), in their study observed that questionnaires are suitable research instruments bacause the are very effetcive in studies that require the examination of subjects attitudes and their perception regarding a given phenomemon under study. Therefore, guided list of questions, which are clear and simple to understand will be used to collect information on subjects experience, perceptions and opinions regarding the current state and prospects of development of businesses in russia under influence of western sanctions.
The collected data will be recorderd fro analysis to asertain whether or not the objectives of the study were achieved. Numerous data analysis techniques can be adopted to analyze the collected data. As such, regression analysis will be used to analyze the data to establish the impact of western sanctions of the development of businesses in Russia. The Excel sheets will be used to enhance representation of the collected informaiton in charts and graphs, for better understanding of the aspect of current state and prospects of development of businesses in Russia and how western sanctions have played a role in duch development.
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BROOKS, R., 2002. Sanctions and Regime Type: What Works, and When? Security Studies, 11(4), pp. 1-50.
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KOTOV, D and URAZMETOVA, L., 2014. Current state, prospects and problems of development of the gas motor fuel market in Russia. OGBUS, (1), pp.377-396.
LEBEDEVA, L. and FEIGUINE, G....
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