Import substitution industrialization in agro-industrial sector and poultry product subcomplex under sanctions

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Ilya Kondratenko


In article the impact of sanctions and counter-sanctions on food products and also possible ways to address the issue of self-sufficiency are considered. The imposition of an embargo, in fact, provided benchmark of development of the Russian economy, and, in particular, agro-industrial sector. This benchmark is import substitution industrialization (ISI). The government of the Russian Federation has taken a plan of action which included amendment of legal acts governing agro-industrial sector. However, existing expertise of food embargoes shows that condition is important but insufficient for rational ISI. Using data from Russia and Sverdlovsk oblast, this article argues that, in general, national situation gives cause for concern for a number of reasons, and basically due to a feature of agricultural sector, leading to its rigidities and impossibility of rapid production increase. However, the author asserts that task of ISI of some agricultural products, in particular, poultry products is progressing positively in selected areas, for example, in Sverdlovsk oblast. In this climate commitment to ISI became a natural reaction to action of the U.S. and some other countries. And it was well received by enterprises of poultry product subcomplex of Sverdlovsk oblast (the producers of agriculture and food just enhanced their status). It is necessary to adjust program of the State's regulation of agro-industrial sector to successfully implement the ISI policy under economic sanctions.

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