Economic Sanctions as a New Opportunity for the Development of the Banking Sector of the Republic of Crimea

Abstract

Under current sanctions, the banking sector in Russia and the Republic of Crimea is undergoing significant transformations. Sanctions pressure is growing, forcing the state to take measures to stabilize the economic situation in the country and in the region, in particular. The paper aims to analyze the impact of economic sanctions on the development of the banking sector of the Republic of Crimea, to identify the challenges faced by the banking sector caused by the sanctions, as well as new opportunities for the development of the banking sector under the restrictions. The article considers the financial sanctions imposed on the Republic of Crimea and their consequences, analyzes the trends in the development of the regional banking sector opening to large Russian banks. The author features the specifics of the banking system formation in the Republic of Crimea since 2014, the issues of the republic’s banking sector activity under the sanctions, analyzes statistical data on placed and attracted funds of individuals and legal entities of the region. The conclusions are drawn on the rapid overcoming of the banking isolation of the Republic of Crimea, active development of Russian banks and innovations, and sustainable economic growth of the region.