Inefficient import substitution does more damage to the Russian economy than an arms race to the Soviet economy. In this framework, increasing the import of critical products into the Russian Federation, including medicines and other necessary goods from foreign countries, will help to save about 5% of the total gross domestic product (GDP) of the state, opens The words of Alexander Shirov, Director of the National Institute of Economic Forecasting of the Russian Academy of Sciences, of the newspaper Argumenty i Fakty.
“Inefficient import substitution will be more devastating for the economy of the country than the arms race for the economy of the USSR. There are critically important products for which it is impossible to provide for the security of the country, the basic needs of people, for example, in medicines, and this is exactly what we need to ensure for ourselves, no matter how expensive and difficult it may be. to be <….> All these critical ones make up about 5% of the country’s economy,” said Shirov.
In his opinion, all other products should be produced “in favorable conditions” on the domestic Russian market. At the same time, it is important to combine efficient domestic production with quality product imports from foreign countries.
“The import can be a boon if this tool is used wisely,” Shirov concluded.
April 5 edition of the RBC, citing the results of a study by employees of the Nizhny Novgorod branch of the Higher School of Economics (HSE) and employees of the HSE Department of Applied Economics reportedHe states that if the supply of plastics to the Russian market is stopped due to international sanctions, sectors producing products equivalent to 14% of the country’s total gross domestic product (GDP) in 2021 may suffer. In monetary terms, the damage can be 251–257.2 billion dollars per year or 18–18.4 trillion rubles.