Directions of Sustainable Development of the Region’s Economy Under the Conditions of Sanctions

Abstract

The relevance of the article lies in determining the directions for the sustainable functioning of the region’s economy under the sanctions of unfriendly states, assessing the enterprises of the fuel and energy com¬plex of the Orenburg region and, on this basis, substantiating the creation of an integrated petrochemical cluster. The purpose of the article is to identify the territorial features of the sustainable development of the region’s economy under the impact of sanctions, identify its problems and develop recommendations for the formation of an integrated petrochemical cluster. In modern conditions, there is a decrease in the profitability of enterprises, an increase in risks and their possible bankruptcy, which ultimately provokes the unsustainable development of both enterprises and the regional economy. It is shown that the current situation contributes to the disruption of logisti¬cal ties in the export industries of the fuel and energy complex, the electronic and machine-building industries, and the agricultural sector, which has a negative impact on the sustainable functioning of the region’s economy. These conclusions are confirmed by many authors whose research results are presented in the article. The leading methods of this research are the analysis and generalization of scientific publications, methods of classification and retrospective analysis. The novelty of the study lies in clarifying the concept of sustainable development of the region’s economy, determining its factors and results. The authors show that the fuel and energy and agricultural sectors of the economy will have a key impact on the functioning of the economy. This conclusion is substanti¬ated by the given statistical and other factual data. In particular, it is shown that in the total volume of industrial production of the Orenburg region, the fuel and energy sector accounts for about 60% and provides an annual production of more than 15 billion m3 of gas, more than 21 million tons of oil and gas condensate, as well as the processing of about 5 million tons of oil. More than 2.5 million tons of grain crops are grown annually in the region (2020 more than 4 million tons), over 33 thousand tons of meat products, 260 thousand tons of dairy prod¬ucts. All of the above creates favorable conditions for the innovative development of the economy. As an example, a diagram of the organizational and production specialization of an integrated innovative petrochemical cluster is given. The practical significance of the results of the study lies in the development of a set of measures to implement an effective regional policy aimed at achieving sustainable development through the creation of an innovative petrochemical cluster. Further research is supposed to be carried out in the direction of developing the theoretical and practical foundations for the organization and functioning of integrated petrochemical agglomerations.