The sanctions imposed by Western powers and their allies in the spring and summer of 2014 exerted a powerful influence over the subsequent evolution of political economy in Russia. After nearly two and half decades of ever-closer integration with the global economy – especially with Western countries – sanctions caused policymakers in Russia to reassess the nature of the country’s relationship with the global economy. They did not, however, turn to Soviet-era aspirations to autarky. Instead, significant efforts were made to build a more secure and durable system of political economy based on the development of domestic capabilities in strategic (as defined by Russian policymakers) industries as well as by cultivating closer ties with alternative sources of technology and capital from outside the West and its allies. In formulating this response, policymakers reduced the impact that sanctions had upon the functioning and performance of the Russian economy, which in turn alleviated the economic and political pressure that Western powers hoped might cause Russia to modify its policies towards Crimea and Ukraine.