IMPORT SUBSTITUTION: Russia Now Less Affected by Oil Prices and Sanctions – Russian Finance Minister


Russia’s economy has become less dependent on external factors, such as oil prices and sanctions, “despite this double blow,” Russian Finance Minister Anton Siluanov said.

“I can say now that our economy has become less dependent on oil prices and less dependent on the impact of sanctions. We have learned to respond to the restrictions that have been introduced, we have started to develop our own economy, our own industry and agriculture,” Siluanov told channel Russia-1.

In addition to the factors cited above, independence also emerged in terms of the technologies that were formerly imported from abroad. In general, this is known as import substitution industrialization, a necessary part of a balanced and somewhat self-reliant economy.

“And we will support and support the companies that will be able to manufacture products that we previously imported,” he said.

Previously, Siluanov commented that the Russian authorities are working to avoid using the dollar in foreign trade, starting to carry out transactions in euros, rubles and other currencies.

“We will present tax preferences, we will talk about the quick refund of value added tax on exports,” the minister said.

Although the Kremlin has few resources to prevent the introduction of new sanctions by Washington, it may try to minimize its consequences, said political scientist Gevorg Mirzayan.

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US congressmen constantly threaten Moscow not only with new sanctions but also with really drastic measures, political scientist Gevorg Mirzayan recalled in an article for Russian magazine Expert.

One of his latest threats is the so-called KSA (Security Kremlin Attack Protection) (DASKA) bill.

This document provides for prohibiting Russian state-owned banks from conducting transactions in dollars. His goal is to punish Russia because “the current sanctions regime has not been able to stop Russia from interfering with the 2018 mid-term elections,” according to Republican Lindsey Graham, who called the document “the law of infernal sanctions.”

Although many experts believe that it is virtually impossible to introduce some of the measures envisaged in the DASKA, the mere discussion of this project has a destabilizing effect on the Russian economy.

Mirzayan believes it would be better for Russia to begin reducing its dependence on the dollar now, not to continue suffering because of the rumors and to protect the economy if the more hostile senators can carry out their radical ideas.

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