INSTITUTIONAL TRAPS OF FUEL AND ENERGY SECTOR ADAPTATION: THE ROLE OF SANCTIONS IN REPRODUCING 
SUBSIDY DEPENDENCE
Abstract and keywords
Abstract (English):
This article examines the impact of international sanctions on the exacerbation of the "resource curse" in countries with a dominant fuel and energy sector. It is demonstrated that sanctions pressure leads to an increase in government subsidies to the fuel and energy sector, which exacerbates structural imbalances in the economy and increases fiscal risks. A step-by-step reform of the subsidy system aimed at transforming support into a tool for stimulating diversification and improving efficiency 
is proposed as a solution. The central element of the study is the development of the Fuel and Energy Sector Subsidy Dependence Index, a tool for monitoring and managing reforms. The practical application of the index is demonstrated, demonstrating its sensitivity to changes in subsidy policy. 
It is concluded that the proposed approach allows for the reform process to be shifted toward evidence-based policy and ensures the achievement of economic resilience goals.

Keywords:
sanctions, fuel and energy sector subsidies, energy security, fuel and energy sector transformation, government regulation, institutional traps
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References

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