This chapter provides a stylized outline of the core features of Russia’s system of political economy. This system of political economy – described here as a limited-access system of political economy – exhibits a specific pattern of integration with the wider global economy. Both factors help explain why Russia was able to undertake adaptive measures in response to sanctions. Several key characteristics of Russia’s system of political economy and pattern of integration with the global economy are identified. First, the system of political economy is based on the generation of rents from globally competitive sectors of the economy and the redistribution of those revenues to other less competitive sectors of the economy. Second, the Russian state is able to use a range of levers to direct resources to areas of the economy that are considered important by the political leadership. Third, while Russia is an open economy that is well integrated with the global economy, the Russian state exerts a strong influence over how that interaction with the outside world takes place. It is these key features of the Russian system of political economy that have proven crucial in explaining how Western sanctions have affected Russia since 2014.