Target
This article will show how certain types of strategies affect the effectiveness of sanctions and what factors determine the choice of behavior.
Methodology
The research method is qualitative and 127 companies and stores in Russia were surveyed through online interviews.
Findings
The probability of the effectiveness of sanctions increases not only because of their severity for the economy of the target country but also the performance of adherence to their principles by the companies of the sending countries. Avoiding sanctions and increasing investment in the target country (the behavior observed by many companies facing EU sanctions against Russia in 2014) reduces the impact of these restrictive measures.
Conclusion
Although administrative responsibilities are more compatible with sanctions, dependence on the market and intangible assets in the country creates the goal of strategies that challenge sanctions policies. The EU-Russia sanctions dispute also encourages European companies to increase their involvement in Russia. These so-called defiance strategies reduce the real economic impact of sanctions and create a new balance that negatively removes these restrictive measures and has negative long-term political consequences. This study provides new understanding of national policy in the context of sanctions, and the use of its points can open a new window on the strategic thinking of senior executives active at the organizational and national levels.