The impact of supply chain disruptions caused by international sanctions on the development of sovereign economies: Difference-in-Difference methods of analysis

A.H. Fikire, E.V. Korchagina

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Abstract. International sanction highly disrupts the food supply chains by increasing production and transportation costs, reducing trade flows, and affecting macroeconomic performance. Therefore, this study is relevant in addressing the impacts of supply chain disruption caused by international sanctions on the development of sovereign economies to enhance the efficiency of food supply.
Aim. The study is to investigate the impact of supply chain disruption caused by international sanctions on the development of sovereign economies.
Materials and methods. The data were collected from the World Bank database and compiled in the panel dataset. For this purpose, the study employed both descriptive and inferential statistics to analyze the panel dataset.
Result. The findings reveal that international sanctions significantly affect Russia’s trade balance, oil rents, foreign direct investment and real effective exchange rate inflows relative to China and Brazil. Conclusion. This study provides empirical evidence on the supply chain channels through which international sanctions impact sovereign economic development. The results offer insights for policymakers and stakeholders in designing strategies to mitigate supply chain disruptions and enhance economic resilience under sanctions.

Keywords: Supply chain disruption, International sanction, GDP growth, Oil rents, Sovereign economy, trade balance, difference in difference

For citation. Fikire A.H., Korchagina E.V. The impact of supply chain disruptions caused by international sanctions
on the development of sovereign economies: Difference-in-Difference methods of analysis. News of the KabardinoBalkarian Scientific Center of RAS. 2026. Vol. 28. No. 2. Pp. 119–132. DOI: 10.35330/1991-6639-2026-28-2-119-132

©   Fikire A.H., Korchagina E.V., 2026

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Information about the authors

Abebaw H. Fikire, Postgraduate Student, Institute of Industrial Management, Economics and Trade, Peter the Great Saint Petersburg Polytechnic University;
29, Polytechnicheskaya street, Saint Petersburg, 195221, Russia;
abebawhailu26@gmail.com
Elena V. Korchagina, Doctor of Economic Sciences, Associate Professor of the Professor, Institute of Industrial Management, Economics and Trade, Peter the Great Saint Petersburg Polytechnic University;
29, Polytechnicheskaya street, Saint Petersburg, 195221, Russia;
elena.korchagina@mail.ru, ORCID: https://orcid.org/0000-0003-3070-2508, SPIN-code: 8556-2270

Funding

The study was performed without external funding.