The impact of economic sanctions on the industrial regions of Russia (the case of Sverdlovsk region)

Abstract

Relevance. The turbulence of the global economy and pressure from sanctions have become a serious challenge for the Russian economy. Industry is hit the hardest as it is involved in the international division of labor and creation of value chains, unlike other branches of material production. It is, therefore, necessary to conduct in-depth research on these processes in order to provide Russian industrial regions with effective strategies to adapt to this new geo-economic reality. Research objective is to identify trends and prospects for the development of Russian industrial regions in the context of international sanctions pressure. A particular focus is made on the case of Sverdlovsk region, which has a high concentration of mining and manufacturing enterprises. Data and methods. The study applies a systematic approach by using methods of structural, statistical and comparative analysis. Statistical materials of relevant ministries and departments of the government of Sverdlovsk region as well as the data from international databases comprise the empirical basis of the study. The results of the survey of 50 managers from 12 logistics companies of Sverdlovsk region have been analyzed as well. The survey was carried out from January, 2022 to August, 2022. Results. The study has shown the complex effects of the international economic sanctions on the trajectory and dynamics of the development of the industrial sector in Russia. The study describes the scenarios of the industrial development of Sverdlovsk region involved in the process of import substitution and transformation of logistics and value chains. Conclusions. These findings can be of interest to policy-makers on the national and regional levels as well as businesses involved in import substitution programs.

Assessment of the level and structure of stress in tax revenues of the federal and regional budgets

“…While the response of Russian regions to the COVID-19 pandemic has been extensively studied, there has been limited research on their resilience to the recent sanctions. For instance, Stepanov et al (2022) analyze Sverdlovsk region, with a high concentration of mining and manufacturing enterprises, revealing the complex impact of international economic sanctions on the trajectory and dynamics of the Russian industrial sec-tor. Akberdina (2022) explores the Greater Urals, encompassing industrial, resource, resource-industrial, and agrarian-industrial regions, demonstrating that resilience factors effective in the first wave of sanctions (2014)(2015) proved insufficient to overcome the crisis caused by the sanctions in 2022.…”

Strategic perspectives in the coal industry of the Russian Federation

“…-рассмотреть возможность резидентства торговых (трейдерских) компаний в зонах со специальным административным режимом («русские оффшоры», о. Русский), предназначенных в настоящее время исключительно для компаний с «пассивным» доходом (получения дивидендов, роялти, арендных платежей) [11];…”