Main Import Substitution Policy Methods and Approaches in the Russian Oil and Gas Complex

Abstract

Accelerated technological development of domestic industries capable of competing with foreign counterparts remains relevant in connection with the disappointed hopes for the lifting of sanctions. Currently, a variety of programs and funding schemes designed to facilitate effective implementation of the import substitution strategy are being utilized in the Russian Federation involving the simultaneous participation of the State and private sector on a partnership basis. The present research discloses methods allowing the State to stimulate this process, provides several examples from the practice of the Industrial Development Fund functioning and some funding results of the import substitution process. The authors have also given the forecast of probable scenario concerning future developments which are the most favorable for continuing the import substitution process in Russia's gas sector and improving the process management methods. The economic feasibility of this issue is unambiguous with regard to national security, but the problem of substituting the imported goods with the locally produced analogues has many aspects and includes the need to protect the internal market from foreign competition and improve the quality of products offered by domestic enterprises, as well as the complexity of entering new markets and much more. One of the tasks of import substitution is the reduction in hidden import and the Russian export dependence from components purchased abroad. The paper addresses the issue of the place and role of innovations in creating competitiveness in both domestic and foreign markets. The paper is aimed at determining the main targets for import substitution, analyzing the full list of methods for and approaches to achieving the set indicators and assessing their efficiency.