FinTech as a Means of Overcoming Sanctions Damage to Russian Market Institutions

The study analyzed the damage to the institutions of the Russian market caused by Western sanctions, as well as identified fundamental directions to overcome it using modern financial technologies (FinTech). The term "institution" was perceived as the normative social "fabric" of social relations, which has been developing historically. Every institution has two obligatory semantic spheres: a) norms of life and activity rooted in public consciousness; and b) their implementation mechanisms (institutions) - specific banks, tax offices, regulatory authorities, etc. It was shown that over the years of market transformations in Russia the mechanisms of exchange institutions were "engraved" into the institutional "fabric" of the West. The institutional structures of distribution system were rebuilt accordingly, and the structures of the production system were closely tied up with the institutions of exchange. Western sanctions led to the breakdown of Russian institutions of exchange and production: they did not have time to take root in Russian public consciousness in a quarter of a century, and they were “torn out” from the Western institutional “fabric”. As a result, there was a threat of shut down of economic life. To mitigate the damage caused by sanctions, the authors proposed to use the opportunities available to modern FinTech: 1) non-monetary co-investment of material resources belonging to different owners in the framework of joint business projects (Shared Investing); 2) building chains of increment of added value in order to maximize the removal of transaction costs of market institutions; 3) the use of cost "machines" Intangible (visualizing the processes of working with value). The study revealed that FinTech can mitigate the damage caused to financial institutions as well as start organizing production on new, more efficient (than traditional) principles.