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Challenges and Opportunities in the Development of Russian Digital Economy: From the Russo-Ukrainian Conflict to Counter-Sanctions

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DOI: 10.25236/iemetc.2024.007

Author(s)

Wei Zheng, Guangbo Liu, Zhifang Wang, Ting Han, Zhenghui Pan, Jian Li, Yang Sun, Zhisheng Zhang

Corresponding Author

Zhenghui Pan

Abstract

This article delves into the developmental challenges and strategic adjustments of Russian digital economy against the backdrop of the Russo-Ukrainian conflict, as well as the pursuit of growth dynamics and innovative opportunities amidst the pressures of Western sanctions. The paper begins by outlining the tangible costs Russia faces in the digital warfare, highlighting the weaknesses in Russian digital technologies that were exposed during the conflict and emphasizing the strategic importance of the digital economy and technology. Subsequently, the article analyzes in detail the profound impact of the "One Ban, Five Cuts" digital sanctions imposed by Western countries on Russian digital economy, revealing the crippling blow these sanctions dealt to Russian digital transformation. It also explores Russian strategic adjustments in resource allocation and international cooperation to find pathways through the sanctions. Additionally, the paper discusses Russian efforts to strengthen international collaboration in the digital economy sector and the crucial role of building an innovative ecosystem in adjusting Russian digital economic strategy and driving innovation. In conclusion, the paper asserts that the digital warfare and sanctions under the Russo-Ukrainian conflict context have reaffirmed the pivotal role of the digital economy in international competition, emphasizing the importance of developing the digital economy, consolidating new infrastructure, and enhancing international cooperation.

Keywords

Russian Digital Economy; Russo-Ukrainian Conflict; Digital Sanctions; Innovation-Driven; Strategic Adjustments