Sanctions imposed on Russia since its invasion of Ukraine have created significant constraints on its access to global communication, financial, and commercial systems. These sanctions have incentivised innovation and institution building, including new social media apps and payment networks that are beyond Western monitoring and control. In addition, the use of cryptocurrency and ‘burner banks’ have helped to disguise payment flows and maintain Russia’s economy. Russia also takes advantage of illicit trade networks, such as shadow fleet oil sales. Together, these adaptations have produced a Kremlin controlled digital and financial ‘splinternet’ ecosystem that weakens Western leverage and complicates sanctions enforcement. Consequently, Russian resilience be able weather the imposed sanctions more easily than originally envisaged, actually enhancing regime survival under such pressures. Moreover, this economic resilience allows Russia to financially support external coercion, for example against Ukraine and in its hybrid war on the West, while maintaining internal coercion strategies that detect and punish opposition inside Russia, such as surveillance and suppression of dissidents.
