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What waits us tomorrow: What branches will be hit by supplies' sanctions of technological equipment to Russia?

Author

Listed:
  • Golikova, V.

    (HSE University, Moscow, Russia)

  • Kuznetsov, B.

    (HSE University, Moscow, Russia)

Abstract

The paper is focused on the problem of the Russian manufacturing firms' dependence on imported technological equipment and on the impact of economic sanctions of 2022. We illustrate the scale of that dependence from both friendly and unfriendly countries. We take into account the geography of sales, investment activity, and other features of firms. Our results show that the preference for imported equipment is more common for firms that use imported intermediate goods (raw materials, details, components, etc.), for the firms with large investments as well as for those exporting to the nearby countries - members of Eurasian Economic Union (EAEU). The most acute problem with imported equipment was revealed in light industry, wood industry, electrical and electronic machinery, vehicle production. The dependence is also high in the production of chemical products. We demonstrate that the major suppliers of technological equipment for Russian manufacturing firms are the European countries and China. The share of Europe has a tendency to decline while China's share is growing. The low diversification of sources for imported equipment and highly limited capabilities for import substitution may become a significant obstacle for ensuring technological sovereignty in the medium-term outlook.

Suggested Citation

  • Golikova, V. & Kuznetsov, B., 2023. "What waits us tomorrow: What branches will be hit by supplies' sanctions of technological equipment to Russia?," Journal of the New Economic Association, New Economic Association, vol. 60(3), pages 187-196.
    • Handle: RePEc:nea:journl:y:2023:i:60:p:187-196
    DOI: 10.31737/22212264_2023_3_187-196
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    References listed on IDEAS

    as
    1. Danila Karpov, 2022. "Russia's Dependence on Import of Intermediate Goods," Bank of Russia Working Paper Series wps106, Bank of Russia.
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    3. Simola, Heli, 2022. "Can Russia reorient its trade and financial flows?," BOFIT Policy Briefs 7/2022, Bank of Finland Institute for Emerging Economies (BOFIT).
    4. Heli Simola & Aino Röyskö, 2023. "Russia's Technology Imports from East  Asia," Asian Economic Papers, MIT Press, vol. 22(1), pages 1-10, Winter/Sp.
    5. Berezinskaya, Olga (Березинская, Ольга) & Schelokova, Dina (Щёлокова, Дина), 2018. "Technological Dependence on Imports and Prospects for Import Substitution in Russian Industrial Production [Технологическая Зависимость От Импорта И Перспективы Импортозамещения В Российском Промыш," Working Papers 021802, Russian Presidential Academy of National Economy and Public Administration.
    6. Simola, Heli, 2023. "The shift in Russian trade during a year of war," BOFIT Policy Briefs 9/2023, Bank of Finland Institute for Emerging Economies (BOFIT).
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    import of equipment; import substitution; Russian manufacturing; economic sanctions; markets; investments;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • F51 - International Economics - - International Relations, National Security, and International Political Economy - - - International Conflicts; Negotiations; Sanctions
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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