MOSCOW, March 12 Russian industry has withstood the first blow of unprecedented sanctions, but work on import substitution is just beginning, says Andrey Klepach, chief economist at VEB.RF.
He announced this during the fifth All-Russian forum on financial literacy “Simply Capital”, organized by PSB Bank.
“In 2022, import substitution became not only a matter of economic development, but also a matter of survival, preserving production chains and the ability to make the products that we make. This applies not only to the defense industry, but also to the entire high-tech sector of the Russian economy. We withstood the first blow, but It’s clear that this work is only at the beginning,” Klepach said.
According to Klepach, the process of import substitution is long-term, so in 2022-2023, Russian enterprises mainly replaced European suppliers with Asian ones. But at the same time, programs to create their own developments were accelerated.
“It is clear that in many areas we cannot completely replace imports. In some places this is impractical, and in others it is almost impossible. Therefore, we need to decide what we can do ourselves and what we will purchase from friendly or neutral countries. Sanctions that are now unfolding, this process is seriously complicated. Therefore, we need to find new solutions. If we cannot replace some strategic products, we need to change the design of many products,» the speaker explained.
According to him, import substitution is a huge job that requires time, costs, planning and long-term goals.
“In the full sense, this work will never end, since the sanctions regime is unprecedented and is enshrined in laws in the United States and Europe. Solving the problems of import substitution gives a huge impetus to the development of our industry,” concluded Klepach.