The Transformation of Consumer Behavior: the effect of Sanctions

Russian-Ukrainian conflict of 2014 has caused significant consequences, including aggravation of relations between Russian Federation and the West (the EU, the USA). Disagreement with actions of Russian government has caused the imposition of sanctions against Russian Federation, which started from prohibitions on entry the USA against some governors and continued with severe financial sanctions. These events have led to sharp fall of oil prices, ruble devaluation and reciprocal sanctions from Russian side. Firstly, this study identifies if there was the structural break after sanctions in consumer behavior trend via testing linear regression, where consumption is represented in form of Retail trade volume index. Then his thesis is studying the effect of sanctions on consumer behavior via comparison of dissatisfaction of consumers before (2011) and after sanctions (2016). Probit models describes the likeliness of different demographic factors on dissatisfaction in three dimensions, which includes high prices, quality and assortment.