The Russia-Ukraine War: Interdependence Theory and Its Impact on Russia’s Energy Exports and Economic Stability

Authors

DOI:

https://doi.org/10.61732/bj.v4i1.184

Keywords:

Interdependence Theory, Liquid Natural Gas, North Atlantic Treaty Organization, European Union, Russia-Ukraine conflict

Abstract

The research analyzes the economic and geopolitical ramifications of the Russia-Ukraine conflict on Russia’s energy exports and financial resilience, utilizing the Interdependence Theory as a guiding framework. The eruption of war and subsequent Western sanctions disrupted Russia’s longstanding energy trade with Europe, driving a strategic pivot toward Asian markets, specifically China and India. This evolution has presented considerable barriers, including infrastructural constraints, diminished profit margins, and increased military costs, which have amplified domestic economic pressures. By examining the erosion of mutual economic dependencies, the research illustrates how geopolitical tensions can alter interdependence into vulnerability, fundamentally changing global energy safety and eco relations. The determinations underscore that while Russia has managed to redirect some exports, losing its primary European market and the complexities of new trade partnerships have weakened its economic position. This research contributes to broader debates on the resilience and adaptability of interconnected economies during geopolitical crises, offering insight into the evolving structure of international energy markets in an era marked by shifting alliances and persistent uncertainty. The study underscores the importance of understanding how external shocks can reshape national economies and the broader global order.

Downloads

Download data is not yet available.

Author Biographies

Aiysha Safdar, Kinnaird College for Women

Aiysha Safdar Ali is an Associate Professor and the Head of the Department of International Relations at Kinnaird College for Women, Lahore. She holds a PhD in International Relations from the University of the Punjab and an MPhil from Kinnaird College. Dr. Safdar’s research focuses on strategic and defense studies, power politics, and regional security, with a particular emphasis on the Indian Ocean region. She has published extensively on topics such as maritime strategy, geopolitical competition, and South Asian security dynamics.

Ayesha Mirza, Kinnaird College For Women University

Ayesha Mirza is an MPhil scholar in the International Relations Department at Kinnaird College for Women Lahore. 

References

Konstantin Sonin, “Modern Imperialism and the Origins of the Russia-Ukraine War,” Becker Friedman Institute for Economics Working Paper 2024-115 (2024): 18-1, https://bfi.uchicago.edu/working-papers/modern-imperialisms-and-the-origins-of-the-russia-ukraine-war/.

Jonathan Masters, “Ukraine: Conflict at the Crossroads of Europe and Russia,” Council on Foreign Relations Backgrounder (2023): https://www.cfr.org/backgrounder/ukraine-conflict-crossroads-europe-and-russia.

Jeffrey Mankoff, Russia’s War in Ukraine: Identity, History, and Conflict, report, Center for Strategic and International Studies, April 22, 2022, https://www.csis.org/analysis/russias-war-ukraine-identity-history-and-conflict.

Center for Preventive Action, War in Ukraine, Global Conflict Tracker, updated May 27, 2025, Council on Foreign Relations, https://www.cfr.org/global-conflict-tracker/conflict/conflict-ukraine.

Waheeda Rana, “Theory of Complex Interdependence: A Comparative Analysis of Realist and Neoliberal Thoughts,” International Journal of Business and Social Science 6, no. 2 (February 2015): 290, https://megalecture.com/wp-content/uploads/2022/09/interdependence-theory.pdf.

Ali Sabbaghian and Roya Rasooli, “Stability Analysis of Russia-EU Energy Relations after the Ukraine Crisis from Perspective of the Interdependence Theory,” Central Eurasia Studies 14, no. 1 (Spring & Summer 2021): 177–201, https://jcep.ut.ac.ir/article_83523_en.html?lang=en.

Paul J. Saunders, Russia’s Global Energy Role: War, Sanctions, and the Energy Transition (Energy Innovation Reform Project, 2024), ISBN 978-1-735-9335-4-2, https://www.researchgate.net/profile/Paul-Saunders-13/publication/380320175_Russia's_Global_Energy_Role_War_Sanctions_and_the_Energy_Transition/links/66354e8b35243041535fc366/Russias-Global-Energy-Role-War-Sanctions-and-the-Energy-Transition.pdf.

Janis Kluge, “The Russian Economy at a Turning Point: As the War Boom Ends, the Kremlin Faces Growing Economic Risks,” SWP Comment 53/2024 (Berlin: Stiftung Wissenschaft und Politik, 2024), 4, https://www.swp-berlin.org/10.18449/2024C53/

Iryna Martyniak, Tetiana Trubnik, and Yurii Kostenko, “Comprehensive Empirical Analysis of the Impact of Inflationary Processes on Economic Development: Trends, Mechanisms, and Forecasting Models,” Economic Issues of Social Development, no. 2 (2025), published January 23, 2025, https://doi.org/10.70651/3083-6018/2025.2.02.

Elena G. Popkova, Ksenia V. Ekimova, and Bruno S. Sergi, “Data Set of Balance of Russia’s Regional Economy in 2005–2024 Based on the Methodology of Calculation of ‘Underdevelopment Whirlpools’,” Data in Brief 31 (August 2020): 105821, https://doi.org/10.1016/j.dib.2020.105821.

John Baffes and Christian Kauffmann, “Russian Oil Exports under International Sanctions,” Becker Friedman Institute for Economics Working Paper No. 2023-115 (2023), https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4430053.

T. Hasib and V. V. Vengadasalam, Impact of SWIFT Sanction on Global Economy (Faculty of Computing and Informatics, Multimedia University, 2024).

Simran S., “What Is Swift Banking System – A Comprehensive Guidebook,” BDTASK, August 31, 2023, https://www.bdtask.com/blog/what-is-swift-banking-system.

A. Katz and O. Kovalchuk, “Too Much of a Good Thing? Russia-EU International Trade Relations at Times of War,” Journal of Industrial and Business Economics 49 (2022): 807–834, https://doi.org/10.1007/s40812-022-00232-2.

Eurostat, “EU Trade with Russia – Latest Developments,” data extracted in February 2025, planned article update May 21, 2025, https://ec.europa.eu/eurostat/statistics-explained/index.php?title=EU_trade_with_Russia_-_latest_developments.

Manahal A., A. Ali, and U. F. Ashraf, “EU-Russia Relations: Contentions and Cooperation 2015–2022,” Journal of Asian Development Studies 13, no. 2 (2024): 807–834, https://doi.org/10.62345/jads.2024.13.2.29.

Max Seddon et al., “Russian War Machine Bogged Down One Year after Putin Expected Victory within Days; Kremlin Grapples with Military Setbacks, Financial Woes and Wavering Public Support in Conflict against Kyiv's Forces,” The Financial Times, February 22, 2023, https://www.ft.com/content/.

P. N. Pavlov and S. M. Drobyshevsky, “Structure of GDP Growth Rates in Russia up to 2024,” Voprosy Ekonomiki, no. 3 (2022): 29–51, https://doi.org/10.32609/0042-8736-2022-3-29-51.

Jan Starosta, “What Lies Ahead for Russia in 2025?” INE Institute, February 2, 2025, https://ine.org.pl/en/what-lies-ahead-for-russia-in-2025/.

International Energy Agency, “The Russia-Ukraine Conflict, Soaring International Energy Prices, and Implications for Global Economic Policies” (2022), https://pmc.ncbi.nlm.nih.gov/articles/PMC11379587/.

Vibhuti Raghunandan, “March 2024 – Monthly Analysis of Russian Fossil Fuel Exports and Sanctions,” Centre for Research on Energy and Clean Air (CREA), April 18, 2024, https://energyandcleanair.org/march-2024-monthly-analysis-of-russian-fossil-fuel-exports-and-sanctions/.

John Baffes and Christian Kauffmann, “Russian Oil Exports under International Sanctions,” Becker Friedman Institute for Economics Working Paper No. 2023-115 (2023), https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4430053.

Centre for Research on Energy and Clean Air, “April 2024 — Monthly Analysis of Russian Fossil Fuel Exports and Sanctions” (2024), https://energyandcleanair.org/april-2024-monthly-analysis-of-russian-fossil-fuel-exports-and-sanctions/.

Ministry of Finance of the Russian Federation, “Russia Federal Government Revenue: Oil & Gas, 2005–2024,” CEIC Data, 2024, https://www.ceicdata.com/en/russia/federal-government-revenue-and-expenditure-general/federal-government-revenue-oil--gas.

Evgeny Y. Vinokurov, Alisher Ahunbaev, and Andrey I. Zaboev, “International North-South Transport Corridor: Boosting Russia’s ‘Pivot to the South’ and Trans-Eurasian Connectivity,” Russian Journal of Economics 8, no. 3 (2022): 1–12, https://rujec.org/article/86617/.

Muhamad Firmansyah and Silvia Dian Anggraeni, “China’s Energy Diplomacy towards Russia in the Eastern Siberia Pipeline Development during President Xi Jinping Period,” Jurnal Dinamika Global (Universitas Pertamina), accessed July 5, 2025, https://ejournal.fisip.unjani.ac.id/index.php/jurnal-dinamika-global/article/view/699/273.

A. Kozmenko, “Arctic Oil and the Eastern Direction of Russia’s Energy Policy,” SHS Web of Conferences 84 (2020): 03004, Circumpolar Studies 2020, https://www.shs-conferences.org/articles/shsconf/pdf/2020/12/shsconf_circumpolarstudies2020_03004.pdf.

Farzana Nasrin and Syed M. Ahmad, “Russia’s Post-Ukraine War Strategy in South Asia & the Indian Ocean: Navigating Relations Amidst Changing China-India Dynamics” (paper presented at the I. International Congress of Economics and Administrative Studies [ULIC], Tokat, Turkey, May 23–25, 2024).

UPSC, “Russian Consignment to India via INSTC,” Drishti IAS, June 29, 2024, https://www.drishtiias.com/daily-updates/daily-news-analysis/russian-consignment-to-india-via-instc.

Boris Hilgenstock, Yuliya Pavytska, and Volodymyr Ivanchuk, KSE Institute Russia Chartbook: Macroeconomic Pressure on Russia Remains Moderate (Kyiv: Kyiv School of Economics, 2024), https://kse.ua/wp-content/uploads/2024/06/Chartbook_June2024.pdf.

Irina Liadze, Claudio Macchiarelli, Peter Mortimer-Lee, and Pablo Sanchez Juanino, “Economic Costs of the Russia-Ukraine War,” The World Economy 46, no. 4 (2022): 874–886, https://doi.org/10.1111/twec.13336.

Adeel Manahal, Ali Ali, and Umer Farooq Ashraf, “EU-Russia Relations: Contentions and Cooperation 2015–2022,” Journal of Asian Development Studies 13, no. 2 (2024): 807–34, https://doi.org/10.62345/jads.2024.13.2.29.

Olena Semenenko, Maryna Sliusarenko, and Andrii Remez, “Impact of the Russian–Ukrainian War on the National Economy of Russia,” International Relations 36, no. 1 (2023), https://doi.org/10.1177/02601079231207489.

P. N. Pavlov and S. M. Drobyshevsky, “Structure of GDP Growth Rates in Russia up to 2024,” Voprosy Ekonomiki, no. 3 (2022): 29–51, https://doi.org/10.32609/0042-8736-2022-3-29-51.

Boris Hilgenstock, Yuliya Pavytska, and Volodymyr Ivanchuk, KSE Institute Russia Chartbook: “Macroeconomic Pressure on Russia Remains Moderate” (Kyiv: Kyiv School of Economics, 2024), https://kse.ua/wp-content/uploads/2024/06/Chartbook_June2024.pdf.

“Russia 2035: The New Quality of the National Economy,” Economic Policy 35 (2024): 161–70, https://doi.org/10.1134/S1075700724020151.

Stephen K. Wegren, “Can Russia’s Food Exports Reach $45 Billion in 2024?” Journal of Agricultural and Applied Economics 51, no. 1 (2019): 147–175, https://doi.org/10.1080/14631377.2019.1678346.

“Russia 2035: The New Quality of the National Economy,” Economic Policy 35 (2024): 161–70, https://doi.org/10.1134/S1075700724020151.

Oxford Analytica, “Russia Eyes Further Expansion of Agriculture,” Expert Briefings (2024), https://doi.org/10.1108/OXAN-DB287538.

I. G. Ushachev, M. V. Kharina, and V. S. Chekalin, “Long-term Forecast of Agricultural Development in Russia Based on an Economic and Mathematical Model,” Studies on Russian Economic Development 33 (2022): 282–92, published June 2, 2022, https://link.springer.com/article/10.1134/S1075700722030157.

Yakov and Partners, How Russia Can Increase Agricultural Exports to USD 70 Billion, February 29, 2024, https://yakovpartners.com/publications/the-new-ambition/.

Lyudmila Yu. Piterskaya, Yulia M. Sklyarova, Lyudmila A. Latysheva, Denis S. Veselov, and Artem M. Shaposhnikov, “Current Global and Russian Trends in the Development of Investment and Innovation in the Agro-Industrial Complex,” in AgroTech, edited by Elena G. Popkova and Anastasia A. Sozinova, 109–18 (Singapore: Springer, 2022), https://doi.org/10.1007/978-981-19-3555-8_11.

Stockholm Institute of Transition Economics, The Russian Economy in the Fog of War (2024), https://www.konj.se/download/18.443e2a2a19246dbc98a2c89/1727781967239/2024-10-01%20Report%20on%20the%20Russian%20economy.pdf.

Boris Hilgenstock, Yuliya Pavytska, and Volodymyr Ivanchuk, KSE Institute Russia Chartbook: Macroeconomic Pressure on Russia Remains Moderate (Kyiv: Kyiv School of Economics, 2024), https://kse.ua/wp-content/uploads/2024/06/Chartbook_June2024.pdf.

Ministry of Finance of the Russian Federation, “Russia Federal Government Revenue: Oil & Gas, 2005–2024,” CEIC Data, 2024, https://www.ceicdata.com/en/russia/federal-government-revenue-and-expenditure-general/federal-government-revenue-oil--gas.

Alexander Katz and Oksana Kovalchuk, “Too Much of a Good Thing? Russia-EU International Trade Relations at Times of War,” Journal of Industrial and Business Economics 49 (2022): 807–34, https://doi.org/10.1007/s40812-022-00232-2.

Farzana Nasrin and Syed M. Ahmad, “Russia’s Post-Ukraine War Strategy in South Asia & the Indian Ocean: Navigating Relations Amidst Changing China-India Dynamics” (paper presented at the I. International Congress of Economics and Administrative Studies [ULIC], Tokat, Turkey, May 23–25, 2024).

Adeel Manahal, Ali Ali, and Umer Farooq Ashraf, “EU-Russia Relations: Contentions and Cooperation 2015–2022,” Journal of Asian Development Studies 13, no. 2 (2024): 807–34, https://doi.org/10.62345/jads.2024.13.2.29.

Andreas Kellerhals, Thomas Baumgartner, and Faton Ademi, eds., EU Enlargement and European Integration: Challenges and Perspectives (2024), https://books.google.com.pk/books?id=S90dEQAAQBAJ.

Farzana Nasrin and Syed M. Ahmad, “Russia’s Post-Ukraine War Strategy in South Asia & the Indian Ocean: Navigating Relations Amidst Changing China-India Dynamics” (paper presented at the I. International Congress of Economics and Administrative Studies [ULIC], Tokat, Turkey, May 23–25, 2024).

Dmitry V. Mosyakov, Marina A. Shpakovskaya, Tatiana I. Ponka, and Vladimir A. Danilov, “Pivot to the East as a Factor in Strengthening Russian Influence in Asia,” Russia’s Pivot to the East 24, no. 2 (2024): 181–91, https://doi.org/10.22363/2313-0660-2024-24-2-181-191.

Andrey Zakharov, “India-Russia Relations in Troubled Times: Steady but Stagnating,” Asie.Visions, no. 140 (Paris: Ifri, 2024), ISBN 979-10-373-0868-9.

Ankit Kumar, “China-Russia Relationship: Assessing the Power Asymmetry, Takshashila Discussion Document” No. 2024-17 (Bangalore: The Takshashila Institution, 2024), https://static1.squarespace.com/static/618a55c4cb03246776b68559/t/66d725ca48b0225366aeed07/1725375960249/China-Russia+Power+Asymmetry.pdf.

Vladimir Astrov, Alexander Kochnev, Volker Stamer, and Federico Teti, The Russian Economy Amidst the War and Sanctions (Vienna Institute for International Economic Studies, 2024), https://www.econstor.eu/bitstream/10419/303471/1/190347809X.pdf

Published

2025-07-31

How to Cite

Safdar Ali, A. ., & Mirza, A. (2025). The Russia-Ukraine War: Interdependence Theory and Its Impact on Russia’s Energy Exports and Economic Stability. BTTN Journal , 4(1), 18–46. https://doi.org/10.61732/bj.v4i1.184

Issue

Section

Articles