Analysis of internal environment in coal industry of Russia: main risks after economic sanctions

Literature review and methods

The concept of international sanctions must be considered. There are decisions by which countries and organizations of countries protect the interests of national security, international law, and themselves from threats to peace and security. Such decisions are different types of restrictions, for example, economic, trade, diplomatic and others. Such sanctions can be introduced both by an organization of countries such as the UN and by individual countries. Let’s take a closer look at the types of sanctions, essentially a military intervention. Although international sanctions do not include the use of military force, such a measure may be approved by the United Nations Security Council, in accordance with Article 42 of Chapter VII of the Organization’s Charter. It should be noted that the imposition of international sanctions is the exclusive prerogative of the UN Security Council (Al-Badi and Al Mubarak, 2019; Bersano et al., 2020).

Sports sanctions are a ban on athletes from a sanctioned country from participating in international sports competitions. Diplomatic sanctions are severing diplomatic ties, expelling diplomats of the sanctioned country, recalling their diplomats, closing embassies (Cábelková et al., 2021; Castaneda et al., 2018).

Economic sanctions are the key point of this study. First of all, this is a ban on trade, first on military products, and second, dual-use goods. But as described in the introduction of this work, this sanction is not limited. For the topic of this study, it is precisely these sanctions imposed on the Russian Federation in 2022 and the country’s retaliatory sanctions that are relevant. Both the sanctions of international organizations and the sanctions of individual countries were used (Bielecki et al., 2021; Cábelková et al., 2020; Machalek et al., 2021; Makholm, 2021; Malik et al., 2019).

To summarize, the sanctions packages come down to:

A ban on investments in Russia, a ban on transactions with federal loan bonds on the secondary market, a ban on attracting financing from large Russian companies in the international arena and Sale of Russian assets;

A ban on imports to Russia of high-tech products, including technologies and equipment for oil refining; a ban on the sale of aircraft, spare parts for them, a ban on insurance and maintenance of equipment; a ban on the sale of products and technologies for the aviation and space industries; a complete ban on aviation leasing in the Russian Federation; prohibition of import of dual-use products; prohibition of import of electronics and computers;

Restrictions for Russian companies for settlements in foreign currencies such as dollars, euros, pounds, yen;

Blocking the assets of Russian banks and companies in the jurisdiction of the United States, prohibiting any transactions of American counterparties with the largest Russian banks and limiting correspondent accounts

A ban on accepting deposits from Russians in excess of 100 thousand Euros, a ban on the sale of securities denominated in Euros to clients from Russia; a ban on the listing of securities of Russian state companies;

Airspace closure, cancellation of flights to Russia; in response to these actions, the Russian Federation also closed the sky for a number of countries;

Freezing of reserves of the Central Bank of the Russian Federation, which are under the jurisdiction of G7 countries;

Disconnection of some banks from SWIFT;

Ban on the sale of the supply of Euro and Pound Sterling banknotes in the Russian Federation;

Stopping all programs of the World Bank, the World Economic Forum;

Refusal of energy resources;

Restrictions in the field of science and education;

Financial restrictions on cryptocurrencies;

Ban on operations with Russian gold;

Prohibition of import of Russian steel products;

Suspension of most favored nation treatment in trade (a key benefit of WTO membership);

Embargo on semiconductors, communications equipment and advanced materials;

Termination of container traffic;

Import tariffs on goods (iron, fertilizer, steel, timber, tires);

Prohibition of gold transactions of the Central Bank and National Welfare Fund;

Russia’s ban on using US frozen reserves to pay for government debt;

EU coal import ban;

Restrictions on imports of fertilizers;

Moscow exchange is deprived of the status of a recognized stock exchange (Great Britain).

Russian retaliatory sanctions are:

Symmetrical closure of the sky;

Termination of deliveries of rocket engines to the United States, termination of their service;

Registration of rights for foreign aircraft leased by Russian companies;

Prohibition of export of wheat, rye, barley to EU countries;

Ban on the export of raw sugar;

Legalization of parallel imports;

Delisting depository receipts of Russian companies from Western trading floors and converting them into Russian securities;

Termination of gas supplies to a number of countries Finland, the Netherlands, Denmark, Poland, Bulgaria;

Reducing gas supplies via the Nord Stream pipeline to 20% of its capacity.

The paper used score, SWOT and risks analysis methods. Firstly, we performed a SWOT analysis. SWOT analysis is a strategic planning tool used to evaluate the strengths, weaknesses, opportunities, and threats of an organization or project. It helps in identifying internal and external factors that are favorable or unfavorable to achieving the objective. SWOT analysis is also used in the field of information security to assess and manage information risks. It is considered a systematic methodology for information protection. The use of SWOT analysis in accounting outsourcing helps in determining the feasibility and potential risks and advantages of using outsourcing services. It provides a way to analyze the strengths, weaknesses, capabilities, and expected threats of the enterprise. SWOT analysis is widely used in management and can be beneficial in security management as well. It helps security managers understand the strengths, weaknesses, opportunities, and threats in the internal and external aspects of organizations.

Secondly, we performed a score and risk analysis. Score analysis methods are used to evaluate various aspects of data in different fields. Propensity score analysis aims to reduce bias in estimating effects and can be implemented using various estimation methods, including logistic regression and machine learning techniques. Additionally, score and risk interpretation methods are used to understand the meaning of scores produced. These methods consider sample characteristics, study design, and statistical analyses to support score interpretation needs (Machalek et al., 2021; Mikhaylov, 2023b; Metaxas et al., 2023; Srbová et al., 2023).

In accordance with the proposed action, we determined which areas will be subject to changes: (1) there will be a reduction in the time for processing information when using these technologies due to the fact that the main templates of operations were previously developed using other technologies; (2) there will be a reduction in the cost of funds for the development of modules and software products. On the platform, it is possible to minimize the completion of all documentation, which will reduce the cost; (3) reduction of labor costs for data processing. The internal environment growth allows to automatically carry out all operations without involving employees; (4) improving the management of the customer base.