Industrial development under sanctions pressure: evidence from Russia

Abstract

One of the most important sectors of the economy in Russia is industry. In this regard, the state seeks to stimulate the development of innovations in this area. Over the past few years, many industrial sectors in Russia have been in a crisis situation, which is caused by several factors: a decrease in the level of real investment, a decrease in the solvent demand of enterprises-customers and public consumers, and the introduction of financial and economic sanctions in 2014 against Russia by the United States and the European Union countries, as well as the effect of other macroeconomic factors independent of the activities of industrial enterprises. This study aims to identify the main trends in the development of industrial production in Russia in recent years, and an explanation of its causes. This topic is relevant in connection with the foregoing and may be of interest to academic economists studying industry development trends in developing countries. The aim of the study is to analyze the state of industry in Russia from 2015 to 2018 during the period of sanction pressure on the industrial and financial sectors of the Russian economy. Having examined the latest data on the results of the activity of Russian industry as a whole, one can note positive trends in the development of industrial production in Russia despite a number of negative internal and external factors. It is concluded that today, for Russia, the strategic tasks in industrial policy are reduced to overcoming technological backwardness and carrying out technological modernization of industries based on the use of innovative achievements, as well as import substitution for the sectors of the economy that are sensitive to foreign sanctions.

Economic and financial results of the USA and the European Union sanctions war against Russia: first results

“…The results obtained in this study are similar to those obtained earlier. Thus, in (Nusratullin et al, 2020a(Nusratullin et al, , 2020b, during an analysis of industrial and socio-economic development, a decrease in the sanction effect on the Russian industry and the public standard of living was revealed. In addition, somewhat positive trends were identified in the operation of the Russian manufacturing industry.…”

The impact of economic sanctions on the industrial regions of Russia (the case of Sverdlovsk region)

“…The works which investigate the impact of sanctions on Russia's industrial policy are of a particular interest. Experts reasonably emphasize the impressive potential of import substitution in the process of transition from an economy with distinct dependence on raw materials and, accordingly, low competitiveness, to the production of high-tech and high-tech products within the framework of the neo-industrialization policy, which implies the development of an economy based on knowledge, cutting-edge technologies and the efficient use of human and material resources (Afanasyev, 2022;Dontsova et al, 2019;Zagashvili, 2016;Nusratullin et al, 2020;Tolkachev et al, 2019).…”

State Policy For The Sustainable Development Of The Mongolian Industry

“…Formation of knowledge, technologies, and innovation becomes a primary source of revenue, i.e. it is necessary to develop knowledge (Nusratullin et al, 2020).…”