Geopolitical decoupling and global production networks: the case of Ukrainian industries after the 2014 Crimean annexation

Abstract

This study investigates the decoupling of Ukrainian aerospace, defense and electro-engineering industries resulting from the Russian Crimean annexation in 2014. Conceptually, we contribute to global value chain/global production network research by developing the notion of geopolitical decoupling, thus augmenting the existing 2-fold typology.

Moreover, the article elaborates a typology of recoupling. Empirically, we investigate patterns of decoupling from Russia and recoupling via alternative production networks as well as patterns of decoupling/recoupling according to the position of companies in the production hierarchy.

We found a neat pattern of decoupling from Russia according to tier but profoundly different dynamics of recoupling with the European Union and Asia.