An influence of import substitution policies on ensuring the national economic sovereignty
Importance Whereas Russia faces the Western economic sanctions, import substitution policies and their effective implementation gain special relevance and significance. As its domestic policy priority, Russia should undertake a combination of measures to provide the domestic market with products, which would be identical to imported ones, and equal in terms of prices and quality. Objectives The research comprehensively examines mechanisms for implementing import substitution policies as a response to the EU and U.S. sanctions. We also identify what mechanisms Russia uses to implement the import substitution policies, priority sectors, and analyze positive and negative effects of the import substitution policies for Russia. Methods The research represents a comparative analysis of export and import in Russia for the period from 2012 through 2015. Results Import substitution constitutes a complicated system, a set of measures to create favorable conditions for domestic production and its development in Russia. Scientific and productive capabilities of domestic manufacturers will not advance without the State aid. We presented measures the State undertakes to create the favorable environment for domestic production. Conclusions and Relevance Import substitution is a long, complicated and contradictory process. Import substitution may prove unreasonable for reasons, other than financial sovereignty that is regarded as a priority for any nation. To provide the market and consumers with products, that would be comparable with imported ones, the country should create appropriate conditions for effective operation and development of human, investment, scientific and productive capabilities.