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

V. Golikova and B. Kuznetsov
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V. Golikova: HSE University, Moscow, Russia
B. Kuznetsov: HSE University, Moscow, Russia

Journal of the New Economic Association, 2023, vol. 60, issue 3, 187-196

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.

Keywords: import of equipment; import substitution; Russian manufacturing; economic sanctions; markets; investments (search for similar items in EconPapers)
JEL-codes: D22 F51 L60 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:nea:journl:y:2023:i:60:p:187-196

DOI: 10.31737/22212264_2023_3_187-196

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