Russia: Who won and lost from import substitution

A study by the Plekhanov Russian University of Economics has found that Russia's import substitution program, which was launched in 2014 in response to the annexation of Crimea, has had partial success in replacing imported goods with domestic products, particularly in the food sector. The program, which allocated around 2 billion rubles over the years, aimed to reduce imports of meat, milk, vegetables, and fruit and berry products by various percentages, with some success in meeting these targets, especially in reducing pork and poultry imports. However, the program has also faced challenges, including the worst import substitution in the fruit and berry products sector, achieving only an 11% replacement. The study also noted a shift in the geography and commodity structure of imports, with a increase in purchases from China and a decrease in purchases from European countries. The program has also faced criticism from the European Union, which has initiated a dispute with Russia at the World Trade Organization regarding discrimination against foreign suppliers by Russian state companies.