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Troshin N.N. Russia in the Continental Blockade: economic consequences

Published in journal "National Security / nota bene", 2015-6 in rubric "Economical support of national security", pages 851-862.

Resume: Under the circumstances of the growing economic sanctions against Russia from the United States and the European Union, resulting from the events in Ukraine, Russia may once again end up in the situation of a Continental Blockade, similar to the one that took place between the 1808 and 1812. The integration of Russia into the Continental System, enacted by Napoleon in the struggle against Great Britain, has led to the degradation of the conditions of Russian foreign trade. But the rapid decline of 1808 was not caused by the dissolution of trade relations with England (Russias key foreign trade partner), as much as it was by Britains retaliatory actions, blocking the coast of Baltic Sea, as well as the embargo by the United Sea. It is evident that the quantitative research is impossible without using a substantial amount of statistical data, and as demonstrated by the analysis of the dynamics of the import and export prices, the negative consequences of Continental Blockade for Russian economy during the Napoleonic Wars were greatly exaggerated. There is no doubt that today the United States have significantly more capabilities than Napoleon had to exert pressure on the Russian economy. Even now, the sanctions affect not only the foreign trade, but the financial operations of Russian banks and companies. But Russias membership in the WTO virtually denies the Western countries the ability to directly implement trade limitations.

Keywords: Continental Blockade, Embargo, Economic sanctions, Export, Treaties of Tilsit , Cotton mills, Relative prices, Trade conditions, Rubles exchange rate, Sugar industry

DOI: 10.7256/2073-8560.2015.6.12430

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