Import Substitution in Industry Over the Period 2014-2017: Imports Have Retained Their Share
Monitoring of Russia's Economic Outlook. Moscow. IEP. 2018, No. 2, pp. 16-19
4 Pages Posted: 1 Mar 2018
Date Written: February 20, 2018
As before, the main obstacle to successful import substitution is the absence, in RF territory, of the production of equipment, equipment components and raw materials needed by Russian enterprises. The second issue associated with problematic import substitution is the low quality of domestic products. These factors have remained practically unchanged since 2014, when surveys of Russian enterprises were demonstrating critical dependence of Russian industry on imports. An overwhelming majority of domestic enterprises have been forced to maintain the same share of imports in their purchases. In 2017, the ruble’s strengthening and industry’s successful adaptation to the 2015–2016 crisis resulted in a minimal reduction of the share of import substitution in purchases reported by enterprises over the three-year monitoring period.
Keywords: Russian industry, import substitution
JEL Classification: C53, L21
Suggested Citation: Suggested Citation