The impact of sanctions on the activities of Russian companies in the manufacturing sector of the economy in 2014-2021

Yu. Zaytsev and A. Loshchenkova
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Yu. Zaytsev: Institute for Applied Economic Research, RANEPA, Moscow, Russia
A. Loshchenkova: Institute of International Economics and Finance, Moscow, Russia

Journal of the New Economic Association, 2023, vol. 60, issue 3, 50-65

Abstract: The article assesses the impact of the western sanctions on Russian companies from the manufacturing sector in the period 2014-2021. The authors review estimates of the impact of sanctions on the economies of countries around the world. The analysis showed that in all recipient countries, imports of enterprises were more affected. In this regard, they actively applied import substitution strategies. As for the Russian economy, the assessment was carried out on such indicators as revenue, gross value added, exports and imports of domestic enterprises. Analysis for the period 2014-2021 showed that the lost revenue of sanctioned processing companies for the period from 2014 to 2021 amounted to almost 278.4 billion rubles, and the underproduced GVA was about 80 billion rubles. At the same time the largest losses were recorded by sanctioned companies from the oil refining sector (?167.8 billion rubles), producing finished metal products (?50.9 billion rubles) and other vehicles and equipment (?46.8 billion rubles). Losses associated with unfulfilled exports due to the impact of sanctions amounted to almost USD2.3 billion, and unfulfilled imports for the specified period amounted to USD429.5 million. The authors offer a number of recommendations for overcoming the negative consequences of sanctions for individual sectors, pointing out the possible risks of the strategy of reorienting trade flows by sanctions companies towards China in the long term.

Keywords: economic sanctions; manufacturing sector of economy; Russian business; gross value added; foreign trade; Russian Federation (search for similar items in EconPapers)
JEL-codes: F51 L25 L6 (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:50-65

DOI: 10.31737/22212264_2023_3_50-65

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