Are the Food Embargo and Import Substitution Changing Regional Production? A Case Study of Leningrad Oblast

K. A. Morachevskaya () and E. A. Lyzhina ()
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K. A. Morachevskaya: St. Petersburg State University
E. A. Lyzhina: Moscow State University, Faculty of Geography

Regional Research of Russia, 2021, vol. 11, issue 4, 502-512

Abstract: Abstract— In the 2010s, in Russia, many conditions for the development of agriculture and the food industry changed, having experienced the consequences of the 2008 and 2014 crises and import restrictions on certain types of agricultural products and food from the EU and other countries. In Russia’s state political agenda, attention to food security has increased and the import substitution policy has intensified. Using the example of Leningrad Oblast, a region located in the zone of influence of the largest agglomeration and neighboring EU countries, the article attempts to answer the questions of who became the true beneficiaries of the food embargo and to what extent external influences have altered the sectoral and territorial structure of food production and to what extent they made it possible to overcome the local context—increase production in peripheral areas. The 2014 food embargo opened up colossal free niches in the market of St. Petersburg, with a population of 5 mln. The analysis showed that there were no fundamental changes in the sectoral structure, but in absolute terms, vegetable production increased significantly, which is directly related to the change in competition due to the food embargo and improvement in credit policy conditions. The dependence of the territorial structure of agriculture on the state of the largest enterprises increased. However, no fundamental changes have been observed in the production of certain food products. The reasons for this are a decrease in demand due to a drop in purchasing power of the population during crisis periods, an insignificant raw materials base in the region, the use of new opportunities by enterprises in St. Petersburg itself, filling the market with goods from neighboring regions and imported products from non-EU countries, owing to its seaside position and presence of a port.

Keywords: food embargo; import substitution; agriculture; food production; Leningrad Oblast (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1134/S2079970521040146

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