Economic sanctions against Iran and their impact on the country’s socio-economic development: Implications for Russia

Aim. The work aimed to analyze the impact of economic sanctions on Iran’s socio-economic development and formulate conclusions relevant for Russia under the sanctions pressure. Objectives. The work seeks to study the long-term consequences of sanctions on Iran’s economy, including their impact on technological development, investment activity, and participation in global value chains; to analyze Iran’s strategies for adapting to sanctions and their effectiveness; as well as to draw conclusions and recommendations for Russia based on the Iranian experience. Methods. The work employed comparative and economic analysis, a systems approach, and descriptive statistics. Attention was paid to the study of empirical data and the assessment of Iran’s macroeconomic indicators under the sanctions pressure. Results. Long-term sanctions have a devastating effect on Iran’s economy. This induces a deepening technological gap, a decrease in competitiveness, and weakening of the potential for sustainable development. An analysis of the Iranian experience demonstrates that measures to support internal production, diversify the economy, and reorient export flows can partially indemnify for the damage from sanctions, but are associated with high costs and limited effectiveness. The findings on the negative long-term effects of sanctions are relevant for Russia. Sanction pressure increases technological underdevelopment, isolates industry, and reduces incentives for modernization. Conclusions. The Iranian experience reveals that lifting of sanctions is a necessary condition for full-fledged economic development and integration into the global economy. However, the process of lifting of sanctions requires the active participation of key international players and the creation of new mechanisms of interaction capable of enhance trust between the parties. For Russia, as well as for Iran, it remains important to find ways to minimize the damage from sanctions and develop strategies aimed at long-term restoration of economic cooperation and competitiveness.