An official discussion with the Economic Development apparatus reveals how Moscow plans to strengthen domestic production and maintain broad assortment in Russian retail. The deputy minister of industry and trade outlined the central approach during a recent interview, highlighting a multi-year path to larger local output and greater market access for goods.
Forecasts from the ministry responsible for economic policy anticipate a dip in retail turnover this year. Still, there is confidence that a steady rebound will begin in the coming years, with a gradual improvement projected for 2023 through 2025. The ministry of industry and trade aligns with these predictions, noting that the current headwinds from sanctions are being addressed comprehensively. The impact is most visible in items with significant import content, including key consumer technologies, home electronics, and automobiles.
To counteract these pressures, the government has rolled out measures designed to ease market access for domestically produced goods and to spark rising consumer demand. The core objective is to foster rapid growth in homegrown production of essential items. Existing support spans direct subsidies for leading manufacturers, information technology firms, and retail chains, along with incentive tax provisions that reduce the cost of doing business here at home.
Beyond backing production, the state is actively expanding the channels through which imports can flow while still encouraging domestic manufacturing. In a deliberate move, policymakers increased support for consumer borrowing tied to vehicle purchases. A notable program allocated 10.2 billion rubles to preferential auto loans in June, aimed at sustaining demand while local vehicle manufacturing scales up.
In a bid to preserve access to well-known brands during a phase of domestic development, the ministry broadened the list of goods permitted under parallel import. This step lets consumers continue to buy trusted labels even as local production expands to cover needs elsewhere in the economy.
Trade finance flexibility has been widened as well. Preferential loan terms can now be used to settle accounts with foreign suppliers, lease space and equipment, cover payrolls, and manage energy costs. By easing logistics and removing procedural hurdles for certain product groups, the government aims to keep shelves stocked and prices stable during the transition.
The government has also allocated a total of half a billion rubles to subsidize advertising for Russian brands, with a focus on television campaigns designed to strengthen brand recognition and consumer loyalty inside the country.
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