Import Substitution 2025: How business has rebuilt the Russian economy

Import Substitution 2025: How business has rebuilt the Russian economy
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Import substitution in Russia continues to transform the domestic economy and redistribute the interests of investors. According to Sergey Yarutin, head of the Association of Import-Substituting Enterprises, the domestic industry has been showing steady growth since 2022. According to Rosstat, the manufacturing industry grew by 6.6% in 2023, and by more than 8% by 2024. The achievements in the production of metal products and computer equipment are particularly noticeable, where the increase was

Despite the success of the industrial sector, entrepreneurs are increasingly choosing the service sector. The most popular areas are publishing, IT, telecommunications, and advertising. The number of new small businesses in these areas has increased to 50% in individual segments.

The Russian economy is gradually moving away from dependence on raw materials. This was facilitated by both the foreign policy challenges in the form of sanctions and restrictions, as well as the strengthening of economic ties within the framework of the BRICS. As a result, many companies have begun to focus on developing their own production, which is focused on both the domestic and export markets.

Sergey Yarutin emphasizes the importance of long-term strategic planning. He believes that the country should build an economy with a horizon of 30-100 years, taking into account the experience of many countries and global trends. Of course, such plans require flexibility, because external conditions are constantly changing. However, the general trajectory of development should be set by the state, especially through the initiative of the president, who is able to balance domestic and international interests.

The Association of Import-Substituting Enterprises conducts analytical work, monitors technological trends and helps businesses build production and logistics chains. Over the past three years, domestic goods have gained a stable position in the market — this has become possible precisely due to import restrictions.

According to various analytical agencies, by the end of 2024, production in five branches of engineering increased by 20%, in machine tool industry — more than doubled, demand for Russian electronics increased by 50%, and products of domestic pharmaceutical companies reached a market share of 36.2%. Construction and finishing materials also showed steady growth, exceeding 8 trillion rubles.

In parallel with the development of domestic production, businesses are actively looking for ways to enter foreign markets. The Association helps companies not only to find foreign partners, but also to build logistics that comply with the laws of the target countries, as well as to form sustainable financial settlement schemes.

Thus, import substitution has become not only a response to challenges, but also a driver of a large-scale economic transformation that contributes to the formation of a new industrial model of Russia's development.