Ten years ago, on August 6, 2014, Russia introduced a food embargo, banning the import of certain food products from Europe and the United States. Artem Genkin, Doctor of Economics, Professor, President of the NPO Center for Protection of Bank Clients and Investors, believes Russia’s food industry has demonstrated dynamic growth over the past decade. Our country has been a net exporter of food since 2020; in 2023, Russia was ranked 17th among the top 20 world’s largest food exporters.
“I think that, considering the current trends, Russia will join the top ten leading food exporters this year,” the expert told the OTR television channel.
Despite the successful import substitution, prices of many products continue to grow at a significant rate. Domestic analogues do not immediately become cheaper than imported goods; the relevant cycle may take from two to three years, Artem Genkin explained.
Russian manufacturers have achieved some success in import substitution of other goods, too. In this sense, Russia is not at the beginning, but in the middle of the road, the economist believes. However, the situation varies significantly across different industries. For example, the government has taken proactive steps to support the pharmaceutical industry, and the pace of import substitution is quite impressive, Artem Genkin emphasized.
“No industry was expected to substitute 100% of the product mix that Russian consumers are used to buying, but a number of industries have achieved up to 80-85% import substitution,” the expert added.