According to a poll of over 2,000 Russian enterprises that was reported by the Vedomosti business daily on Thursday, three out of every four Russian manufacturers have been badly impacted by Western sanctions during the past year.
According to a survey conducted by the Higher School of Economics in Moscow, seventy-seven percent of the manufacturing enterprises that have been negatively impacted by sanctions reported that the impact has been unfavorable. (HSE).
The remaining 23% of respondents stated that sanctions had a beneficial impact on their company’s bottom line.
It was revealed that sanctions imposed as a result of Russia’s invasion of Ukraine in February 2022 had an effect on a total of 65% of the industrial firms that were surveyed.
The affected manufacturers pointed to increases in prices for raw materials on the local market, reductions in imports of goods and services, difficulties with logistics, and concerns with the importation and maintenance of equipment as the primary causes of their troubles.
The effects of Western sanctions have been reported by between 70 and 80 percent of enterprises operating in Russia’s metallurgy, pharmaceuticals, electrical engineering, car manufacturing, chemical, rubber, and plastic industries. These industries have been hit the hardest by the sanctions.
However, producers in the chemical and electrical engineering industries, as well as those in the machinery and equipment industry, and those in the transport engineering industry, all stated that sanctions had enabled them to enter new markets.
those that had international connections and those that were dependent on imports were more likely to indicate that sanctions had a negative impact on their business, whereas those that exported goods said that they had profited from the sanctions overall. According to Vedomosti, 47% of the business executives polled claimed that sanctions have had “generally positive or at least neutral” effects on their companies.
More than a quarter of the people who participated in the survey claimed that they had been able to make the most of new prospects by expanding their share of already existing markets, discovering new markets, and recruiting suitable staff. Switching to new foreign and local suppliers, decreasing costs, expanding into new markets, developing new products and technologies in-house, and reorganizing management and logistics were some of the more prevalent reactions to Western sanctions.
According to Yury Simachev, the director of economic policy at the HSE, “Further fundamental changes are still to come: it takes a long time to find alternative complex technologies. “According to Vedomosti, the HSE conducted a survey comprised of top executives from 1,860 different small, medium, and big industrial enterprises located in 71 different Russian regions.
