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Russian regional resilience under sanctions

Author

Listed:
  • Zemtsov, S.

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Center for Economic Geography and Regional Studies, Moscow, Russia)

  • Voloshinskaya, A.

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA), Center for Economic Geography and Regional studies, Moscow, Russia
    ANO "NIIDPO, Moscow, Russia)

Abstract

External shocks in 2022-2023, caused by sanctions and other restrictions, had a varied impact on economic dynamics in the Russian regions. The article assesses the regional shock resilience and identifies some trends and factors determining the decline in economic activity in 2022 and its recovery in the first half of 2023. 55 of the 85 regions under consideration can be called stress-resistant in 2022-2023. The short-term ability to withstand external shocks is generally higher in regions with more diversified foreign trade, and a diverse economic structure. In general, in 2022-2023, richer resource centres were hit harder by the external shock, but larger regions were able to adapt due to the size and diversity of the domestic market. In the centres of the manufacturing industry, economic activity decreased in 2022 because of disrupted production chains, but this negative effect was not detected in 2023 due to the state policy of import substitution and increased government procurement. Similar picture was observed in resilient regions specializing in consumer services. Resilience is also higher in regions with high entrepreneurial activity, especially in 2023, as small and medium- sized businesses contributed to the adaptation of the economy by occupying market niches of companies that left the market and expanding (diversifying) foreign trade through parallel imports. Significant investment incentives from the state played major role in maintaining economic activity. At the end of the article, some generalizations and recommendations are proposed.

Suggested Citation

  • Zemtsov, S. & Voloshinskaya, A., 2024. "Russian regional resilience under sanctions," Journal of the New Economic Association, New Economic Association, vol. 64(3), pages 54-83.
    • Handle: RePEc:nea:journl:y:2024:i:64:p:54-83
    DOI: 10.31737/22212264_2024_3_54-83
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    References listed on IDEAS

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    Cited by:

    1. Zemtsov, S., 2025. "Sources of business activity growth in the Russian regions during the external shocks," Journal of the New Economic Association, New Economic Association, vol. 66(1), pages 291-300.
    2. Zubarevich, N., 2025. "The impact of sanctions on the development of Russian regions in 2022-2024," Journal of the New Economic Association, New Economic Association, vol. 66(1), pages 274-281.

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    More about this item

    Keywords

    external shocks; economic activity; resilience; exit of foreign companies; economic policy; import dependency; Russian regions;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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