Sanctions are a Dictated Industrial Policy

11 april 2018 | OTR

Anti-Russian sanctions have been in effect for the fourth year. What is their influence on the country economy? What is their impact on small and medium enterprises in Russia? The Chief Advisor to the Head of the Analytical Center Leonid Grigoriev answered these and other questions in an interview for Public Russian Television.

Leonid Grigoryev
Leonid Grigoryev
Chief Adviser to Head of the Analytical Center

According to the analyst, sanctions against Russia always existed. "With regard to official sanctions, the first ones date back to the period of the years 1495-1515. A long-term embargo was applied to export of iron and non-ferrous metals to Russia. Our merchants smuggled silver and copper through Riga. In the Soviet times, we lived in the conditions of sanctions. Some restrictions had existed before 2014," Grigoriev said.

The new sanctions are noticeable, the expert emphasized. At the same time, the trade balance in Russia is positive, money come to the country. But other issues arise relating to financial sanctions, loss of long-term cheap credit, technological restrictions in the sphere of oil and gas, loss of element base in aviation and space, the analyst believes.

Grigoriev noted that 1% of GPD in Russia was public investments in research and development activity, but in other countries 3-4% were invested to companies, which is not the case in Russia. "Oil institutes have been talking for 30 years of the absence of money and the loss of ability to produce new technologies. But when oil companies started to earn money, they began to buy technologies from the West and thus stopped investing money to our developments," Grigoriev summarized.

With regard to small enterprises, this is mostly low technologies, which are hampered by economic environment problems, the expert believes. "Partially, small enterprises give employment which large companies may not always provide. That is why it is important to develop small enterprises to allow young specialists to work in their country rather than abroad. This is an issue of national security," Grigoriev said.

Given that the nineties were not successful for us, we have a reserve of some efficiency growth, the expert believes. "The current situation on the market is that we produce either something complex or something very simple. Germans and Chinese occupied the middle," Grigoriev said and added that sanctions were a dictated industrial policy.

Source: Public Russian Television