Import Substitution in Russia's Manufacturing Industry: A Weak Effect

Abstract

Russia’s import substitution policy has so far failed to have an across-the-board effect. Only a few industries, such as manufacture of metals, textiles, motor vehicles, have managed to replace some of the imported goods with domestically manufactured products. Russia’s economy continues to be heavily depending on imports, including machinery and equipment. Most of the Russian manufacturing sectors are poorly integrated into international value added chains, which limits their production volume growth.

Keywords: Russian economy, import substitution, manufacturing sector

JEL Classification: G18, G28