Industrial development under sanctions pressure: evidence from Russia

Ilmir Nusratullin; Nikolai Sergeev; Maxim Kuznetsov; Anastasia Sheina; Lyudmila Shubtsova

doi:10.34069/AI/2020.28.04.51

Ilmir Nusratullin Project Management and Marketing Department, Institute of Economics, Finance and Business, Bashkir State University, Ufa, Russia. https://orcid.org/0000-0001-7810-2945
Nikolai Sergeev Department of Economics, Management and Law, Udmurt State University, Votkinsk, Russia. https://orcid.org/0000-0001-6431-0321
Maxim Kuznetsov Department of Economics and Management, Kazan Federtal University, Kazan, Russia. https://orcid.org/0000-0002-6318-5837
Anastasia Sheina Department of Economics, Management and Marketing, Financial University under the Government of the Russian Federation, Ufa, Russia. https://orcid.org/0000-0003-3016-6231
Lyudmila Shubtsova Department of State and Municipal Administration, Financial University under the Government of the Russian Federation, Moscow, Russia. https://orcid.org/0000-0003-1153-4211

DOI: https://doi.org/10.34069/AI/2020.28.04.51

Keywords: Industrial development, industry and sanctions, industry in Russia, developing economy.

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.

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Author Biographies

Ilmir Nusratullin, Project Management and Marketing Department, Institute of Economics, Finance and Business, Bashkir State University, Ufa, Russia.

PhD in Economics, Associate Professor, Project Management and Marketing Department, Institute of Economics, Finance and Business, Bashkir State University, Ufa, Russia.

Nikolai Sergeev, Department of Economics, Management and Law, Udmurt State University, Votkinsk, Russia.

PhD in Economics, Head of Department, Department of Economics, Management and Law, Udmurt State University, Votkinsk, Russia.

Maxim Kuznetsov, Department of Economics and Management, Kazan Federtal University, Kazan, Russia.

PhD in Economics, Associate Professor, Department of Economics and Management, Kazan Federtal University, Kazan, Russia.

Anastasia Sheina, Department of Economics, Management and Marketing, Financial University under the Government of the Russian Federation, Ufa, Russia.

PhD in Economics, Associate Professor, Department of Economics, Management and Marketing, Financial University under the Government of the Russian Federation, Ufa, Russia.

Lyudmila Shubtsova, Department of State and Municipal Administration, Financial University under the Government of the Russian Federation, Moscow, Russia.

PhD in Economics, Associate Professor, Department of State and Municipal Administration, Financial University under the Government of the Russian Federation, Moscow, Russia.

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