Illicit Trade of Raw Materials in Logistics Sanctions Circumvention: Causes and Consequences
Ilona DUMANSKA
https://doi.org/10.53465/CEECBE.2025.9788022552257.126-143
Abstract: This research explores the illicit trade of raw materials as a response to logistics sanctions, focusing on the interplay between sanctioned and non-sanctioned countries through regional trade agreements. The study’s findings reveal that the high economic value of critical raw materials and disruptions to legitimate supply chains have catalyzed the emergence of illicit trade networks. Methodologically, moderation, reliability, and correlation analyses were employed, demonstrating that logistics sanctions positively influence unauthorized interactions with countries (NCI = 0.43, p < 0.05) and significantly impact supply shortages (SS = 0.64, p < 0.05), customs regime (CR = 0.42, p < 0.05), transaction values (TV = 0.25, p < 0.05), and the establishment of alternative routes (AR = 0.39, p < 0.05). Notably, regional trade agreements did not mitigate these relationships. This research underscores the need to understand how regional trade dynamics facilitate sanction evasion, thereby influencing the frameworks of illicit trade and logistical operations.
Keywords: Illicit Trade, Sanctions Circumvention, Logistics, Illegal Schemes, Raw Materials
JEL Classification codes: O17, F23, L91
Fulltext: PDF
Published by: Vydavateľstvo EKONÓM, Bratislava University of Economics and Business
Year of publication: 2025
Online publication date: 16 May 2025
Copyright: Author/s of the paper
ISBN 978-80-225-5225-7
ISSN 2453-6113
Pages: 126-143