Project Explanation

Our prjoect seeks to understand the impact of US sanctions on Foregin Countries. We decided to examine Russia and Iran as the United States has put multiple sanctions on both of these countries.

Russia Section

The United States implaced sanctions on Russia in 2014 following their annexation of Crimea and in 2022 after their invasion of Ukraine. Due to the fact the situation with the 2022 sanctions being so recent, we are not entirely sure of its lasting impact. However, we can look at the 2013 sanctions to gather an idea of how the 2022 sanctions will alter the economy.

This graph shows the FDI and GDP from the years 1992 - 2020. It can be seen that both the GDP and FDI took a lasting hit after the sanctions imposed in 2014. The brighter the color of the bar the larger the FDI for the year. Russia had a steadily growing FDI and GDP up until their 2014 annexation of Crimea. It can be seen that sancitons do have a lasting impact on te economy of the countries in which they are in place.

The FDI, Foreign Direct Investment represents the amount of money foreign countries are putting into the country. The graph above shows the FDI for Russia from 1992 to 2020. There is a dramatic decrease in FDI for Russia after 2013 as in the years of 2014-2020. The FDI drops below half of the 2013 value and never goes above half of the 2013 value. It can be inferred from this graph that other countries will not wish to put money into countries after sanctions at it can be a risky business to be associated with a country who has been sanctioned.

From this graph, which displays the GDP ($USD) for Russia from 1992 t0 2020. We can see that the GDP took a large dip in 2014 following the sanctions imposed after the annexation of Crimea. The average GDP after the sanctions in 2014 43% less than th high attained in 2013.

This graph represents the Trading Volume In USD $ for the Moscow Stock Exchange. Sanctions following the 2022 invasion of Ukraine caused the Moscow Stock Exchange to close for about a month. The red dotted line indicates the reopening of the stock exchange. The trading volume of the Moscow Exchange after reopening is steadily below the two year average indicating that sanctions have an immediate affect on monetary flow through the stock markets.

Same graph as above of the Moscow Stock exchange except using a solid line instead of dots.

IRAN SECTION

From the above data we can observe a sharp increase in Iran's foreign investment in 2009. This change in trend can be possibly linked to the 2009 'Green Movement' following a presidential election. Another sharp increase occurs in 2013, another presidential election year.

2009 has increased FDI compared to a relatively constant rate of increase in GDP - likely due to the tulmultous election year. Similarly, 2013 FDI increased drastically and remained high for the next 2 years, despite a decreasing GDP. This trend can be attributed to foreign interests in the 2013 Iranian presidential election as well as events in the country preceeding the 2015 Iranian nuclear deal.