TUNKU ABDUL RAHMAN UNIVERSITY OF MANAGEMENT AND TECHNOLOGY

FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

2022/2023

ABBE3164 ECONOMIC ISSUES AND POLICIES

COURSEWORK 1 – INDIVIDUAL ASSIGNMENT AND PRESENTATION

NAME: Wong Yuk Lei

PROGRAMME: Diploma in Business Economics

YEAR OF STUDY: 2

SEMESTER: 3

ACADEMIC YEAR: 2023

TITLE: Economic impact on Russian Economy from the invasion to Ukraine

For Examiner’s Use Only:

Marks Scored

Written report
(75 marks)

Presentation
(25 marks)

Total
(100 marks)
CLO Marks Scored

2
(42 marks)

3
(58 marks)

Total
(100 marks)

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 FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS
ACADEMIC YEAR 2022/2023
DIPLOMA IN BUSINESS STUDIES (BUSINESS ECONOMICS)
ABBE3164 ECONOMIC ISSUES AND POLICIES
Assessment Grid – Coursework 1 (Written Report)
Score
Criteria CLO Poor Average Good Excellent Score for
CLO
Application of
Poor display of Limited display Good display of Thorough display
knowledge and
relevant of relevant relevant of relevant
research
knowledge. knowledge. knowledge. knowledge.
findings.
0 - 14 15 – 19 20 – 24 25 – 30
CLO Knowledge
2 Knowledge clearly
Poor attempt Limited attempt applied in an
applied in an
and/or and/or lacks analytical
Analytical analytical, diverse /42
incoherent diversity and manner but with
analysis. and practical
analysis. practicality. limited diversity
manner.
and practicality.
0–3 4–6 7–9 10 – 12
High level of
Some analysis
With sound and critical thought
Lacking in but incline
adequate critical demonstrated in
analysis, little towards
review of the analysis and
Critical analysis. or no critical description
information in with a thorough
evaluation. instead of critical
the analysis. evaluation of
evaluation.
information.
0–3 4–5 6–8 9 - 10
Layout of the CLO Poor Reasonably clear Good Very good
report: structure, 3 organisation organisation and organisation and organisation and
organisation and and incoherent coherent coherent coherent
presentation of presentation. presentation. presentation. presentation. /33
issues, etc. 0–3 4–5 6–8 9 - 10

Fluency of the Lacks clarity, Limited clarity, Reasonably

language used: Clear, concise and
conciseness and conciseness and clear, concise
sentence, effective.
effectiveness. effectiveness. and effective.
construction,
grammar, etc.
0–2 3–4 5–6 7
Evidence of Very limited
Some evidence. Clear evidence. Excellent.
research and evidence.
reference. 0–1 2–3 4–5 6
/75 /75
TOTAL:

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 FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS
ACADEMIC YEAR 2022/2023
DIPLOMA IN BUSINESS STUDIES (BUSINESS ECONOMICS)
ABBE3164 ECONOMIC ISSUES AND POLICIES

Assessment Grid – Coursework 1 (Individual Presentation)

Student's name:

Student's ID:
Criteria CLO Excellent Good Fair Weak Score Score
(5 marks) (3 - 4 marks) (2 marks) (1 mark) for
CLO
Students
Students are at
demonstrate full Students are Students do not
ease with
knowledge by uncomfortable have grasp of
Preparation expected
answering all with information information,
and subject answers to all
class questions and are able to cannot answer
knowledge questions, but
with answer only direct questions about
fail to
explanations and or basic questions. subject.
elaborate.
elaborations.
Students’ Students
Students’ Students use
graphics explain occasionally use
Method of graphics relate unnecessary
CLO and reinforce graphics that
presentation to text and graphics or no
3 screen text and rarely support text
presentation. graphics.
presentation. and presentation.
Students present Students
Audience has Audience cannot
information in present /25
difficulty understand
Organisation logical, information in
following the presentation
of interesting logical
presentation because there is no
presentation sequence which sequence which
because student sequence of
audience can audience can
jumps around. information.
follow. follow.
Students
Students Students
maintain eye Students have no
Eye contact maintain eye occasionally use
contact most of eye contact with
with audience contact with eye contact with
the time with audience.
audience. audience.
audience.
Presentation is
Presentation is Structure of
well structured Delivery is
Overall well structured, presentation is
and attempts to disorganized or not
presentation engaging and adequate but
engage the understandable.
confident. limited.
audience.
/25 /25
TOTAL:

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 FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS

COURSEWORK FEEDBACK FORM FOR WRITTEN REPORT

COURSE CODE/ COURSE TITLE: ABBE3164 ECONOMICS ISSUES AND POLICES

NAME OF STUDENT(s): Wong Yuk Lei ID No: 21WBD02035

PROGRAMME: Diploma in Business Economics

YEAR OF STUDY: 2 SEMESTER: 3 ACADEMIC YEAR: 2023
GROUP NO: 1
COURSEWORK NO: 1 NATURE OF COURSEWORK: MARKS
(e.g. presentation,Q& ALLOCATED:
A,individual/group
assignment etc) Refer cover page

COMMENTS :

Student’s Acknowledgement: w Date: 10-4-2023 Lecturer/Tutor’s Signature: Date:

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TUNKU ABDUL RAHMAN UNIVERSITY OF MANAGEMENT AND TECHNOLOGY
FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS
ACADEMIC YEAR 2022/2023
DIPLOMA IN BUSINESS STUDIES (BUSINESS ECONOMICS)
ABBE3164 ECONOMIC ISSUES & POLICIES

Plagiarism Statement Declaration Form

Declaration

I/We confirm that I/we have read and shall comply with all the terms and condition of Tunku Abdul Rahman
University of Management and Technology’s plagiarism policy.

I/We declare that this assignment is free from all forms of plagiarism and for all intents and purposes is
my/our own properly derived work.

I/We further confirm that the same work, where appropriate, has been verified by antiplagiarism software
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Name Student ID Signature

Wong Yuk Lei 21WBD02035 w

Date: _____10-4-2023__________________

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Table of contents

Content Pages

Introduction and Background 14

● Economic Impact 15

● Energy Exports 15

● Currency Depreciation and Inflation 16

● Capital Flight and Foreign Investment 17

● Access to Financial Markets 18

● Effectiveness of Sanctions 18

● Government Revenue 19

Conclusion 19

References 20

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Introduction:
The ongoing conflict in Ukraine, which broke out in 2014, has significantly affected the Russian
economy. Economic sanctions imposed by the US and EU due to Russia's annexation of Crimea
and the ongoing conflict in eastern Ukraine's Donbas region have significantly affected the
Russian economy. This essay will examine how the conflict has affected Russia's economy and
the effectiveness of the sanctions put in place by the West.

Background:
The conflict in Ukraine began in 2014 when pro-Russian separatists in the Donbas region of
Ukraine declared independence from the Ukrainian government. The conflict escalated when
Russia annexed Crimea from Ukraine in March 2014. International condemnation of the
annexation of Crimea led to the imposition of economic sanctions on Russia by the United States
and the European Union.

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Economic Impact:
The conflict and the sanctions have significantly impacted the Russian economy, with effects
ranging from declining GDP to currency depreciation, inflation, and capital flight. The impact of
the conflict and the sanctions can be divided into several categories, including energy exports,
government revenue, foreign investment, and access to financial markets.

Energy Exports:
Russia is the second-biggest exporter of crude oil after Saudi Arabia and the largest exporter of
natural gas worldwide. Therefore, energy exports play a critical role in the Russian economy,
accounting for over 60% of its total exports and a significant portion of its government revenue.
However, the sanctions have significantly affected Russia's energy sector, leading to declining
energy exports and government revenue.

The sanctions have targeted Russia's energy sector, making it more difficult for Russia to
develop its energy infrastructure and expand its exports. For example, in 2014, the European
Union imposed sanctions on the Russian energy sector, which limited access to the technology
and expertise needed to develop new oil and gas fields. As a result, Russia's energy production
has declined, and it has become more challenging to maintain its position as a leading energy
exporter.

The decline in energy exports has significantly impacted the Russian economy, leading to a
decline in government revenue and budget cuts. The decline in government revenue has led to
cuts in spending on social programs and infrastructure, which has negatively affected the
standard of living in Russia (Iea, Oil market report - february 2021 – analysis).

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Currency Depreciation:
The sanctions have also led to currency depreciation, with the ruble's value declining
significantly against the US dollar and other currencies. The decline in energy exports and
government revenue, capital flight, and foreign investment has led to a decline in demand for the
ruble, resulting in its depreciation. For example, in 2014, the ruble lost almost half of its value
against the US dollar, leading to inflation and a decline in purchasing power.

Inflation:
The decline in the ruble's value has led to inflation, affecting many Russians' living standards.
Inflation has been driven by a combination of factors, including currency depreciation, declining
government revenue, and supply chain disruptions.

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Capital Flight:
The sanctions have also led to capital flight from Russia as investors and businesses seek to
avoid the risk of economic instability and political uncertainty. Capital flight has been a
significant problem for the Russian economy, leading to a decline in investment and economic
growth.

Foreign Investment:
The conflict and the sanctions have also affected foreign investment in Russia, with many
investors and businesses choosing to withdraw from the Russian market due to the risk of
economic instability and political uncertainty. Foreign direct investment (FDI) in Russia declined
significantly following the imposition of the sanctions, with many businesses and investors
choosing to divest from the Russian market.

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Access to Financial Markets:
The sanctions have also limited Russia's access to international financial markets, making
borrowing money and financing its economic activities more challenging. The sanctions have
targeted Russia's financial sector, limiting its access to international banking services and capital
markets. For example, EU and US imposed sanctions on several Russian banks, making it more
difficult for them to access international capital markets and financial services.

Effectiveness of Sanctions:
The economic impact of the sanctions on Russia has been significant, with effects ranging from
declining GDP to currency depreciation, inflation, and capital flight. However, the effectiveness
of the sanctions in achieving their intended goals has been the subject of debate. Some analysts
argue that the sanctions have effectively pressured Russia to change its behaviour and end the
conflict in Ukraine. For example, the sanctions have been credited with pushing Russia to agree
to the Minsk agreements, which were designed to resolve the conflict in eastern Ukraine.

However, other analysts argue that the sanctions have been ineffective and have had unintended
consequences, such as strengthening Russia's resolve and driving it closer to China. For example,
the sanctions have led to increased cooperation between Russia and China, with the two
countries strengthening their economic ties and exploring new opportunities for collaboration.
Additionally, some argue that the sanctions have had a limited impact on Russia's behaviour. The
country has continued to support separatist rebels in eastern Ukraine and has shown little
willingness to change its stance (Montenegro police identify US Embassy attacker 2018).

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Government Revenue:
The conflict and sanctions have also significantly impacted the Russian government's revenue.
The Russian government is heavily dependent on revenue from the energy sector, with oil and
gas exports accounting for around 40% of the country's total exports and 50% of its federal
budget revenue.

The decline in oil prices and the sanctions have led to a decline in government revenue, making
it more difficult for the government to fund its activities and maintain its social welfare
programs. The Russian government's budget revenue declined primarily due to the decline in oil
prices and the impact of the COVID-19 pandemic.

Conclusion:
The conflict between Russia and Ukraine and the resulting sanctions have significantly impacted
the Russian economy, with effects ranging from declining GDP to currency depreciation,
inflation, and capital flight. The impact of the conflict and the sanctions has been felt across
multiple sectors, including energy exports, government revenue, foreign investment, and access
to financial markets. While the effectiveness of the sanctions in achieving their intended goals is
the subject of debate, it is clear that the sanctions have had a significant impact on the Russian
economy and have shaped the country's economic and political trajectory over the past several
years.

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References

1) Iea (no date) Oil market report - february 2021 – analysis, IEA. Available at:
https://www.iea.org/reports/oil-market-report-february-2021 (Accessed: April 10, 2023).

2) Montenegro police identify US Embassy attacker (2018) BBC News. BBC. Available at:
https://www.bbc.com/news/world-europe-43151276 (Accessed: April 10, 2023).

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