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15 Jul, 2022 12:52

Russia to turn away from market economy

Domestic needs and technological sovereignty are the country’s primary concern, according to the Trade Ministry
Russia to turn away from market economy

Russia should focus its economic policy on prioritizing domestic needs, the country’s minister of industry and trade, Denis Manturov, said on Friday at a plenary session in the State Duma.

We see satisfying domestic needs as the top priority for our economy. But this does not mean that we will shut ourselves in and not increase our export potential. Quite the opposite. Especially, given the negotiations on mutual cooperation with new markets. I mean, first of all, with the countries of the Middle East, Southeast Asia, Africa and South America,” the official stated.

He noted that in order to achieve this goal, Russia should amend its industrial policy.

It is necessary to make a turn from a market-oriented industrial policy to a policy of ensuring technological sovereignty,” Manturov stated, adding that this notion is fully supported by the Russian government.

The official believes that imported machinery and equipment should be gradually replaced by Russian versions, noting that “industry must ensure virtually autonomous functioning and development of all consumer sectors.

We will accelerate the production of our own analogues to replace imported components,” Manturov said, adding that the government would allocate additional funds to support major state projects. There are also plans to create alternative logistics channels for Russian produce, with an eye to new markets, he said.

The minister outlined five strategically important areas, where technological sovereignty is of the utmost importance. These are national security and defense, where the priority will be given to creating Russian-made high-tech weapons; the energy sector, which is in dire need of equipment made domestically, because Ukraine-related sanctions make it difficult for energy companies to obtain foreign-made parts and equipment; and the shipbuilding, aircraft and chemical industries.

As the minister stated back in May, Russia does not have a goal of complete import substitution in industry. He explained that there are industries where Russia is forced to replace imports due to national security concerns, whereas in other industries international cooperation is and will be maintained.

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