According to the results of the first ten months of 2022, the supply volume of various types of plastics from European Union (EU) countries to Russia decreased by 19-77% according to product categories. In almost the same period (from January to November), the volume of plastics production in the Russian Federation domestic market fell by 6.4%, informs Kommersant newspaper reported the results of a research conducted by the Higher School of Economics (HSE).
One of the main reasons for the decrease in the supply of plastics to the Russian market was the international restrictions imposed on Russia by Western countries in connection with the intensification of the conflict in Ukraine at the end of February 2022. According to the report, the negative effects on the sector were stronger than other types of manufacturing industries.
“In the first ten months of 2022, plastic supplies from the EU fell by 19-77% in various positions. As a result of the restrictions applied in the first 11 months of 2022, plastic production in Russia decreased by 6.4%. Production of polyamide (16%), polyurethane resin (11%), polyvinyl chloride (11%) and polypropylene (8%) decreased most significantly. Exports of these products to the EU decreased by 2-56%, depending on the type of plastic.
On April 5, employees of the Nizhny Novgorod branch of the Higher School of Economics (HSE) and the HSE Department of Applied Economics sent the results of the study that the total annual damage to Russia without the establishment of import substitution for the supply of plastics could be 18-18.4 trillion rubles. In case of complete cessation of the supply of such products to the domestic market of the Russian Federation, sectors producing products equivalent to 14% of the country’s total gross domestic product (GDP) for 2021 may suffer.