The objective of this chapter is to summarise and briefly analyse the transformation process of Moscow’s financial interdependence with the West and the EU, and in particular Russia’s vulnerability. At the level of investments and financial and payments systems there was a much larger development cleavage in 2014 than in EU-Russia trade or energy relations. For the West and especially for the EU, this was the first time that economic statecraft had been used as the central element of its policy towards Russia. For Russia, integration into global value chains became a persistent threat to its sovereignty, forcing it to securitise new segments of its economy and develop new forms of resilience. Consequently, previous cooperation and interdependence moved into a new context, changing their patterns considerably.
Read the full publication here.