This paper examines how human capital (HC) outflows, triggered by economic sanctions, constitute a profound environmental disruption with long-term consequences for firms. We find that in the face of sustained uncertainty, human resource (HR) managers adopt reactive approaches, leading to the widespread abandonment of professional development initiatives. We argue that this shift risks eroding organizational capabilities and placing firms at a long-term competitive disadvantage. By moving beyond macroeconomic discussions of sanctions and focusing on firm-level human resource management (HRM) responses, this study offers new theoretical insights into how geopolitical shocks reshape HRM practices and disrupt the underlying logic of HC investment in high-skill industries.
