Calculation of the sanctions factor in the analysis of political risk

In this article, the author proposes the interpretation of sanctions as a factor of political risk in the framework of the analysis of political risk. The paper proposes a set of indicators and criteria for assessing the sanctions factor of political risk, including the existence of reasons for the imposition of sanctions, the nature of the sanctions already imposed, the current sanctions situation and, finally, the effectiveness of the current sanctions regime. As a result of the study, it was possible to derive a formula for calculating political risk considering the sanctions factor, complementing the existing methodology for analyzing political risk. This technique is useful in the framework of political risk assessment at the stage of preparation for conducting business in the country being assessed, including when investing. At the same time, the potential of using this technique as a tool for identifying vulnerabilities in state policy, leading to a decrease in the investment attractiveness of the country, is noted.