ECONOMIC, TECHNOLOGICAL AND EDUCATIONAL SOVEREIGNTY

Crisis as a window of opportunities —
civic social and economic development initiatives

SINCE 2014, THE ECONOMY OF THE RUSSIAN FEDERATION HAS BEEN UNDER INCREDIBLE PRESSURE. THE NUMBER OF SANCTIONS IMPOSED ON OUR STATE BY THE COUNTRIES OF THE SO-CALLED COLLECTIVE WEST CURRENTLY EXCEEDS 10,000,³⁶ AND MORE THAN 7,000 OF THEM WERE IMPOSED AFTER THE BEGINNING OF THE SPECIAL MILITARY OPERATION. THE NUMBER OF SANCTIONS IMPOSED AGAINST RUSSIA IS MORE THAN IN ANY OTHER STATE IN HISTORY. HOWEVER, THE POLICY OF ECONOMIC RESTRICTIONS FAILS.

Unprecedented government decisions to support the economy, actions of the Central Bank of Russia to protect the Russian ruble, temporary introduction of the “parallel import” system, disagreement of a number of states, including superpowers, with the policy of refusing to cooperate with the Russian Federation, inadequate elaboration of sanctions, which caused more damage to their initiators, allowed the Russian economy not only to withstand this pressure, but also to lay the basis for completely new approaches to economic development, formation of technological and economic sovereignty, as well as conditions ensuring the formation of a multipolar world order.

The special military operation emphasized the relevance of a multipolar world order, while demonstrating the non-Western world’s demand for strategic autonomy expressed, among other things, in supporting our country (refusal to break trade ties and exclusion of Russia from global chains, active participation in the development of alternative payment systems and transportation routes for Russian goods).

POSITIVE DYNAMICS OF THE DOMESTIC ECONOMY

Despite the sanctions’ pressure exerted by a number of Western countries, which began after the reunification of Crimea with Russia in 2014, the policy of economic restrictions did not have a destructive impact on the development of Russia. According to Rosstat, Russia’s GDP (at current prices) increased during the period from 2015 to 2019

by 31.9%

Due to the spread of the COVID-19 pandemic, there was a decrease in the indicator by 2%. However, in 2021, GDP growth (at current prices) resumed and was equal to 21.9% compared to the previous year

Positive dynamics was also noted in terms of GDP per capita. Despite the imposed sanctions and the consequences of the COVID-19 pandemic, this indicator in 2021 increased by

5.2%³⁷

As repeatedly stated by the President of Russia, “the era of a unipolar world order has come to an end. No matter how the beneficiaries of the current globalist model cling to the usual state of affairs, it is doomed to failure. Geopolitical changes of historic proportions are going in a completely different direction [...]. Russia will actively and proactively participate in such coordinated joint work together with its allies, partners and like-minded people, improve the existing mechanisms of international security and create new ones, consistently strengthen the national armed forces and other security structures by providing modern weapons and military equipment.

It is required to ensure our national interests and protect our allies and take other steps towards building a more democratic world where the rights of all peoples and cultural and civilizational diversity are guaranteed.”³⁸

It appears that Russia, acting as the initiator of the ongoing processes, should be one of the first to demonstrate success in the new economic reality. Already today, our country, having significant experience in countering the unfriendly actions of the West since 2014, is trying to find solutions to emerging threats by forming a new industrial and production policy.

The unconditional priority of the Russian Federation against the background of the existing challenges is the well-established system of cooperation between civil society and the state. Thus, in 2021, the Government of the Russian Federation, with the participation of representatives of civil society, selected a number of relevant and popular initiatives that were transformed into government decisions and projects.

In order to search for and generalize the most promising ideas, five working groups, which included representatives of the business community, experts and employees of scientific organizations, as well as regional and federal authorities, were formed. 42 out of 250 initiatives were selected. As a result of the work performed, the Decree of the Government of the Russian Federation of October 6, 2021 No. 2816-р approved strategic initiatives (projects aimed at improving the quality of life of people and transforming the domestic economy).³⁹ These social and economic development initiatives will be implemented until 2030. All of them are divided into six areas: social issues, construction, ecology, digital transformation, technological breakthrough, state for citizens.⁴⁰

Industry associations representing business communities have actively joined the ongoing processes and come up with initiatives aimed at increasing the economic activity of the population and fulfilling the entrepreneurial potential of the country.

Thus, at a meeting with the President, representatives of the All-Russian Public Organization “Business Russia” suggested introducing a moratorium on initiating criminal cases regarding a number of tax issues in case of full payment of arrears. As a result of the meeting, the President of the Russian Federation gave a corresponding instruction. In June 2022, the Ministry of Justice of the Russian Federation submitted for discussion a draft law on the abolition of criminal liability for a number of tax crimes in case of payment of arrears, penalties and fines.⁴¹

In order to avoid liability for entrepreneurs’ failure to perform their obligations to counterparties, including due to any imposed restrictions, the Chamber of Commerce and Industry of the Russian Federation began issuing force majeure documents free of charge.⁴² Following the consideration of Draft Law No. 216303-8 “On Amendments to the Tax Code of the Russian Federation,” the Chamber of Commerce and Industry of the Russian Federation also proposed to exempt the income of all employees, who expressed a desire to participate in the activities of the Armed Forces of the Russian Federation as part of the special military operation, from taxes and contributions.⁴³

On March 2, 2022, “Opora Russia” proposed to develop a new program of concessional lending for supporting export businesses with funding for banks in the amount of 500 billion rubles.

The program is to be launched by the end of 2022.⁴⁴ “Opora Russia” also made a request to grant a deferment from partial mobilization for key and highly qualified employees of small and medium-sized businesses. The document stated that small and medium-sized businesses should continue to work and cover the needs of the state and the population during the period of conscription. To do this, it is worth setting quotas for conscription from one enterprise, and in case of mobilization of the director of the company, provide several days as the relevant transitional period, so that the director can entrust own business to someone else.⁴⁵ On October 22, 2022, the transition period was granted.⁴⁶

THE BANKING SYSTEM OF RUSSIA DEMONSTRATES A HIGH LEVEL OF RESILIENCE TO NEW CHALLENGES.

It was stated in the speech of Vladimir Putin, President of the Russian Federation, at the plenary session of the Valdai Discussion Club held on October 27. He pointed out that the volume of lending increased.

In November, Elvira Nabiullina, Head of the Bank of Russia, confirmed the continued growth potential in lending. She noted that the Russian banking system not only withstood the shocks of 2022, but also improved lending indicators for 2022 according to the updated forecast of the Bank of Russia.

Growth rate of lending to the population increased

from 5–10%

to 7–10%

Mortgage lending forecast improved

from 13–18%

to 14–17%

Corporate lending forecast improved

from 5–10%

to 10–13%⁴⁷

Individual proposals of particular associations caused a mixed reaction in society. Thus, the Russian Union of Industrialists and Entrepreneurs made proposals (more than 40 initiatives) to lower any requirements of industrial ecology in order to reduce “financial and administrative risks”. These proposals concerned both current regulations and those that are not yet into force. However, a number of proposals were not supported by representatives of environmental associations. In particular, the proposal to abolish fines and payments for any damages to the environment was considered as extremely controversial.⁴⁸

A striking manifestation of the consolidation of the business community in Russia was the signing of the Declaration of Solidarity of Russian Business as part of the nationwide #WeAreTogether campaign.⁴⁹ While understanding the significance of the ongoing processes, the business community took an active position by proposing various initiatives to strengthen the economy and satisfy state needs, as well as providing direct assistance to participants of the special military operation and the population of new territories.

However, there were also negative examples. Individual entrepreneurs faced with a choice: Tthey should suffer financial damages and overcome difficulties together with Russia, or, on the contrary, maintain a focus on making a profit and not provide proper and necessary support to the country. They preferred the interests of business and left the country.

Along with direct interaction, another well-established way of implementing civil initiatives is the publication of scientific and other theoretical materials on current issues. Several fundamental scientific works are used in the activities of federal and regional authorities. One of such works is “Growth Crystal. For the Russian Economic Miracle” (authors: Aleksander Galushka, Artur Niyazmetov, and Maksim Okulov) published in 2021.⁵⁰ The publication was recommended for use by representatives of political parties,⁵¹ state authorities and the expert community. The proposals of the authors were supported by the “Socially Significant Initiatives” working group of the Supreme Council of the “United Russia” party, as well as by the Civic Chamber,⁵² at the venue of which various presentations of the publication and autograph sessions of its authors were repeatedly held. According to “Labyrinth”, largest publishing and bookselling holding in Russia, the book became one of the best-selling publications in the field of Economics at the end of 2021.⁵³ In 2022, it was awarded a special diploma of the prestigious Economic Book of the Year award.⁵⁴

In 2021, the authors of the publication in dialogue with representatives of civil society, experts, government bodies and auditors of the Accounts Chamber at the venue of the Civic Chamber actually tested the main ideas of the book through the analysis of the practical implementation of national projects. The work was performed as part of the activities of the Coordination Council under the Civic Chamber of the Russian Federation. Based on its results, the relevant report with detailed proposals for adjusting and improving both the entire system of national projects and individual projects was prepared for the President of the Russian Federation. The positive resolution of the President of our country on the report became a proof of the quality of the work done.⁵⁵

According to the authors of the book, the formation of own economic sovereignty is a strategic task for the Russian Federation due to its historical peculiarities and current geopolitical challenges. At the same time, our state already has such examples, as evidenced by its historical experience. In particular, record economic growth rates during the period from the late 1920s to the 1930s, as well as remarkable recovery rates after the victory in the Great Patriotic War.

Modern planning, advanced technologies and sovereign monetary system subordinated to the goal of national economic growth should be the basis of the country’s economic sovereignty.

An important issue on the agenda of creating a sovereign economy is the abandonment of the US dollar as the key currency used in mutual settlements between states. In 2022, Russia achieved certain success in this area: an agreement with the Republic of Belarus on the refusal to pay in US dollars for the supplied energy resources was reached;⁵⁶ certain types of settlements with Iran were agreed to make in national currencies;⁵⁷ EAEU countries reduced the use of the US dollar in mutual settlements up to 21%, payments in national currencies reached 75%.⁵⁸

Changes in the terms of payment for natural gas supplied from Russia to the countries of the European Union became a significant step towards strengthening the national currency. According to the new terms, all payments are to be made in Russian rubles.⁵⁹

The analysis of existing trends shows that the state and civil society are united in their desire to form not only political, but also economic sovereignty of the Russian Federation. In the new realities, Russia has a unique opportunity to form and propose a new model of economic organization to the world, while considering its past experience.

Sovereignization of the Russian education system

IN APRIL 2022, THE PRESIDENT OF RUSSIA SIGNED THE DECREE DECLARING 2022-2031 THE DECADE OF SCIENCE AND TECHNOLOGY IN THE RUSSIAN FEDERATION. ONE OF THE MAIN TASK MENTIONED IN THE DOCUMENT FOR THE NEXT 10 YEARS IS TO INVOLVE TALENTED YOUTH INTO RESEARCH AND DEVELOPMENT.

THE PRESIDENT NOTICED THAT “THE ACCESS TO A NEW QUALITY OF PERSONNEL TRAINING IS A PRIMARY TASK, AS WE WILL NOT HAVE A TECHNOLOGICAL FUTURE WITHOUT ITS PERFORMANCE. THIS WORK SHOULD BE DONE ALREADY AT SCHOOL. IN ANY CASE, THIS WORK SHOULD BEGIN AT SCHOOL.”⁶⁰

IT specialist checks the performance of the robot for industrial purposes in the industrial robotics laboratory at Innopolis University in Tatarstan. April 12, 2022. Maxim Bogodvid / RIA Novosti

In order to achieve this goal, a single educational space, which ensures equal opportunities for the development and professional self-determination of each child, should be formed in the system of general and vocational education. The most important initiatives adopted in 2022, among which it is necessary to point out the establishment of the Russian Movement of Children and Youth and the adoption of the Concept for the Development of Additional Education, as well as the declaration of 2023 as the Year of Teacher and Mentor, are aimed at contributing to it.

In this regard, the formation of efficient and modern educational spaces in Russian schools is also important. In 2022, a large-scale program “Modernization of School Education Systems,” including the overhaul and renovation of school infrastructure and the advanced training of teachers, was launched. Until the end of 2026, it is planned to renovate 7,300 schools across the country. The public oversight over the implementation of the Program is performed by the Federal Headquarters of Public Council established under the Civic Council of the Ministry of Education of the Russian Federation with the support of the Civic Chamber.

First-grade pupils at the Knowledge Day ceremony held at School No. 158 in Moscow. September 1, 2022. Ramil Sitdikov / RIA Novosti

In 2022, the issues of forming a unified educational space were widely discussed at the venue of the Civic Chamber. The proposals of the participants of the events expressed in the framework of public hearings and discussions of the substantive basis of the regulatory support for the activities of the Russian Movement of Children and Youth, unified substantive standard for the organization of general education (“School of the Ministry of Education of the Russian Federation”), concept of a unified list of school textbooks formed according to the recommendations of the Civic Chamber sent to Federal Assembly of the Russian Federation and Ministry of Education of the Russian Federation.

In 2022, the development of the Russian higher education system is a key item on the agenda of the country’s scientific community. The need to reform the domestic economy in terms of sanctions pressure made it necessary to accelerate the transformation of the higher education system and refocus universities in the training of specialists on ensuring the performance of new tasks.

Participants of the student tournament for negotiations with a foreign partner of the School of Export of the Russian Export Center (REC) at the “Made in Russia” International Export Forum. October 22, 2022. Grigory Sysoev / RIA Novosti

The process of sovereignization of the higher education system is currently implemented as a result of the joint efforts of relevant state authorities, scientific community and civil society as a whole. In April 2022, at the venue of the Civic Chamber, representatives of civil society considered various proposals for the creation of the national system for evaluating the efficiency of scientific research and development within the framework of the “Science and Universities” national project in terms of indicators of publication activity, development of leading Russian scientific journals, organization of evaluation of scientific activity by experts and related regulatory framework. Various recommendations were formulated during the event for performing the considered tasks, which determined the structure and content of the system for evaluating the efficiency of scientific activities, including: defining targets for evaluating the efficiency of research; development of the national system for the presentation of scientific results and scientific communication; establishment of a highly respected and trusted national corps of experts; development of the state system of scientific expert evaluation.

The creation of a national system for evaluating the efficiency of scientific research and development was almost completed by the end of August 2022. Valery Falkov, Head of the Ministry of Education and Science of the Russian Federation, noted that the evaluation of scientific performance would be performed in accordance with the national metrics, which make it possible to consider any contribution to the performance of national tasks and the achievement of national goals. However, the approach to the evaluation of scientific activities is still in the process of transformation.⁶¹

In the new economic conditions, special attention is paid to the training of personnel at universities, including future scientists.

At a meeting of the Presidential Council for Strategic Development and National Projects, Valery Falkov, Head of the Ministry of Education and Science of the Russian Federation, pointed out the main areas for developing the system of training scientific personnel, including: social support for young scientists (in 2022, about 1 billion rubles were allocated for such purposes under the program of providing housing certificates); stimulation of scientific leadership (distribution of professional training programs for postgraduate students at universities aimed at improving the competencies of young candidates and doctors of sciences); development of the format of “industrial postgraduate studies” involving the implementation of thesis projects in the interests of and together with companies; development of the institution of targeted postgraduate studies in regional universities making it possible to send the best graduates to the country’s leading universities, but with a guarantee of returning to a well-paid job after defending a thesis.⁶²

In addition to the training of scientific personnel, the training of IT specialists, who can positively influence economic development and ensure national security, is of strategic importance. In 2022, the Ministry of Education and Science of the Russian Federation allocated 160,000 state-funded places in this area.

The launch of a project to establish digital departments at universities became an important step to meet the demand in the public and business sector for IT specialists. In 2022, digital departments were established at all 106 universities participating in the “Priority 2030” program.⁶³

Russian universities are actively involved in the economic activity of the country not only as a key link in the training of qualified personnel, but also as agents of economic growth for their regions and developers of popular technologies. In September 2022, Valery Falkov announced the beginning of the competitive selection of participants for the “Priority 2030. Far East” program during the Eastern Economic Forum.⁶⁴ The goal of the program is to transform regional universities and promote the social and economic development of the Far Eastern Federal District.⁶⁵ In October 2022, following the results of the competitive selection, eight universities were announced as the participants in the “Priority 2030. Far East” program, while 20 universities of the region took part in the competitive selection. The winners of the competition are located on the territory of six regions of Russia: Primorsky Region, Amur Region, Republic of Sakha (Yakutia), Republic of Buryatia, Khabarovsk Region, and Kamchatka Region. In 2022, each of the eight universities received state support in the amount of 71.25 million rubles. Such funds will be used to support teachers and students, improve the material and technical base and purchase new educational and laboratory equipment. Until 2024, 5.77 billion rubles will be allocated for the development of universities participating in the “Priority 2030. Far East” program.⁶⁶

High human resources potential is a key for ensuring technological sovereignty and sustainable social and economic development of the state in general and regions in particular. The principles of formation of personnel forecasts and programs for providing regional enterprises with highly qualified specialists were considered within the framework of the round table (“Highly Qualified Personnel for the Development of Regions”) held at the venue of the final “Community” forum. The experts emphasized the importance of integrating universities and organizations in the real sector of the economy in order to provide a practice-oriented project approach to the organization of educational activities. Special attention was paid to the evaluation of the results of implementing the network form of education and aspects of expanding its use.⁶⁷

Today, representatives of civil society pay considerable attention to academic mobility in the new conditions. The sanctions imposed by unfriendly countries also affected higher education: many Russian students studying abroad faced various issues related to the impossibility of continuing their education. In this regard, the Ministry of Education and Science of the Russian Federation took measures aimed at supporting such students and creating opportunities for their education at domestic universities.⁶⁸

Considering that academic mobility is still an important component in the preparation of students and the development of scientific and pedagogical personnel, the creation of a sovereign system of higher education does not imply its closeness. The refusal of unfriendly countries to cooperate with Russia stimulates the expansion of academic mobility in partner countries.

In July 2022, representatives of the scientific and civil society held a round table on the issues of increasing academic mobility in the EAEU countries at the venue of the Civic Chamber. The proposals of the participants formed the basis for the recommendations of the Civic Chamber sent to the Ministry of Education and Science of the Russian Federation. One of the key initiatives contributing to the development of academic mobility in the EAEU countries is the establishment of the Eurasian Network University and the study of issues of its legal status, as well as the unification of requirements for educational standards and programs.

Mikhail Mishustin, Prime Minister of the Russian Federation, talks with the winners of economic olympiads on the sidelines of the Moscow Financial Forum held at the Manezh Central Exhibition Hall. September 8, 2022. Dmitry Astakhov / RIA Novosti

Key principles for the development of the Russian economy

TODAY, ECONOMIC MOBILIZATION IS BECOMING ONE OF THE KEY DIRECTIONS OF DEVELOPMENT. BACK IN JULY 2022, VLADIMIR PUTIN SIGNED THE FEDERAL LAW “ON AMENDING CERTAIN LEGISLATIVE ACTS OF THE RUSSIAN FEDERATION” REGULATING THE FINANCIAL SUPPORT OF THE ARMED FORCES DURING COUNTER-TERRORISM AND OTHER OPERATIONS OUTSIDE RUSSIA.⁶⁹ ACCORDING TO THE FEDERAL LAW, LEGAL ENTITIES ARE NOT ENTITLED TO REFUSE TO SIGN A NUMBER OF CONTRACTS, WHICH WILL ALLOW TO MOBILIZE THE AVAILABLE RESOURCES FOR ACHIEVING THE STRATEGIC OBJECTIVES.⁷⁰

Production of tickets and cards with chips at the Mikron plant. The Mikron Group of Companies, which is the largest manufacturer and exporter of microelectronics in Russia, produces more than 700 types of products, including integrated circuits for secure storage media, identification, payment and transport documents, power management and labeling solutions, for various sectors of the digital economy. Moscow (Zelenograd), March 23, 2022. Anton Novoderezhkin / TASS

The scenario of economic mobilization in the macroeconomic forecast was also discussed at the meeting of the State Duma Committee on Budget and Taxes in October 2022. The mobilization economy will make it possible to create prerequisites for increasing the role of public investment, since the business sector has become less active in investing for development issues in terms of uncertainty. Fears are caused by certain elements of the mobilization economy, such as forced state orders and money emission, which cause inflation, but there are no signs of such trends at present.⁷¹

The mobilization economy does not exclude the wide use of market mechanisms. In turn, the creation of the strategic planning system, including accountability mechanisms and the subordination of monetary policy to the goals of economic growth and increase in the welfare of the population may have a positive effect. Similar economic model is currently used, for example, in China.⁷²

While considering the currently achieved level of unity between society and the state, the formation of a new, socially-oriented and independent economy as a tool for ensuring a decent life for each person and fulfilling his or her talents and opportunities is of particular relevance.

In turn, while understanding the unprecedented importance of technological sovereignty, the Government of the Russian Federation is taking measures aimed at developing and supporting the independence of Russian technologies and launching own production facilities.

In particular, Dmitry Chernyshenko, Deputy Prime Minister, while noting the significant role of programmers in achieving technological sovereignty, said that the Government provides IT specialists with a whole range of support measures: from tax preferences and preferential mortgages to deferment from military service.

According to the President’s instruction, the quality of their training in universities is being improved, and the number of state-funded places is growing every year. Within the framework of the “Digital Economy” national program, the “Digital Professions” project is being implemented.⁷³

Separate work is being performed on the development of quantum computing solutions as part of the joint activities of the Government and the Russian Academy of Sciences aimed at achieving technological sovereignty.⁷⁴

During the VIII Russian Forum “Microelectronics 2022,” Dmitry Chernyshenko noted that, according to the current situation, microelectronics is one of the most demanded and promising areas of the coming years, which means that it is an integral part of our joint work to achieve technological sovereignty, the importance of which is repeatedly mentioned by the President. The era of globalization in the global semiconductor industry has come to an end. And in the context of a global trend towards the creation of local closed technological ecosystems, the only way for Russia is to create its own high-tech radioelectronic industry.

From February to April, the Government held several strategic sessions, where leading industry experts proposed various scenarios for supporting and developing microelectronics. Many initiatives are included in the activities of new federal projects, the formation of which is at the final stage. At the same time, as a result, an increase in the investment attractiveness of the industry is already noted.⁷⁵

The Ministry of Education and Science of the Russian Federation and the Innovation Promotion Foundation hold the “Student Startup” competition, which is aimed at supporting business ideas, helping to bring innovative products to the market and filling vacant niches. 1,000 students became the winners of different competition grants of 1 million rubles each for the implementation of startups. Their implementation will contribute to the performance of the tasks set by the President to achieve the technological sovereignty of the country and ensure its economic security.⁷⁶

IN THE FRAMEWORK OF ITS SPIEF-2022 SPEECH, VLADIMIR PUTIN POINTED OUT SIX MAIN PRINCIPLES OF THE NEW ECONOMIC POLICY OF RUSSIA

1

OPENNESS

Despite the sanctions pressure, Russia does not seek to isolate itself from the whole world, but is ready to contribute to global development and expand interaction with everyone who is interested in equal cooperation.

2

RELIANCE ON BUSINESS FREEDOM

Each private initiative aimed at the development of Russia should receive support and opportunity for its implementation. The state intends to continue reducing the administrative burden on the business sector. In particular, by refusing to inspect businesses whose activities are not associated with a high risk of harm to the environment and the health of citizens.

3

RESPONSIBLE AND BALANCED MACROECONOMIC POLICY

This approach has already demonstrated its efficiency in practice, and Russia intends to adhere to it in the future.

4

SOCIAL JUSTICE

The development of the economy should, first of all, lead to a reduction in inequality in society. The growth of real incomes of citizens and the reduction of poverty are an indicator of the efficient work. The well-being of people remains the most important factor in the economic development of the country.

5

ADVANCED INFRASTRUCTURE DEVELOPMENT

By increasing budget expenses to strengthen any transport infrastructure, the state sets the task of repairing at least 85% of the federal highway network over the next five years. It also provides a comprehensive modernization of housing and communal services, solution of issues of citizens living in emergency housing, overhaul of residential buildings.

6

ACHIEVEMENT OF TECHNOLOGICAL SOVEREIGNTY

Independence from foreign institutions is a crosscutting principle that unites the goals and tasks of economic development. It is necessary to strive to create an integral system of economic development and develop our own technologies.⁷⁷.

As part of the work on the transition of Russian enterprises to domestic software, 335 projects (216 projects were selected and approved) were proposed. For such purposes, the budget provides more than 28 billion rubles. At the same time, businesses will invest more than 155 billion rubles in selected projects. It will satisfy the needs of customers and achieve the export potential of Russian solutions. The first results are expected to be seen in 2023 and 2024. It is also planned to systematize and approve the projects of competence centers for the development of system-wide and applied software in the near future.

In order to ensure the competitiveness of products of Russian developers in foreign markets, the Ministry of Industry and Trade of the Russian Federation and the Ministry of Digital Development, Communications and Mass Media of the Russian Federation jointly created a digital attache service.⁷⁸

On November 10, 2022, the Government included the RuStore app store in the list of applications for mandatory pre-installation on electronic devices.

Girl wearing VR glasses at the IX International Technological Development Forum “TECHNOPROM 2022” in Novosibirsk. August 24, 2022. Rostislav Netisov / RIA Novosti

It will provide Russian users with uninterrupted access to popular digital services and applications in the context of external restrictions.

RuStore was developed on behalf of Mikhail Mishustin, Prime Minister of the Russian Federation. It was developed by VKontakte together with the largest Russian IT companies with the support of the Ministry of Digital Development, Communications and Mass Media of the Russian Federation.⁷⁹

At the end of 2022, it can be stated that Russian business currently has an active position in filling niches vacated due to the departure of foreign companies. At the same time, in order to support entrepreneurs, the Government currently implements the principles of the new economy by creating conditions for the development of Russian citizens, showing openness, relying on the initiatives of the scientific and professional community in the preparation of state decisions, thereby laying the basis for the rapid development of the economy and the achievement of full technological sovereignty.

Import independence as the basis of the country’s economic and social security. Substitution of the agricultural sector

THE FOOD SECURITY OF THE RUSSIAN FEDERATION STIPULATES THE STATE OF SOCIAL AND ECONOMIC DEVELOPMENT OF THE COUNTRY, WHICH ENSURES THE FOOD INDEPENDENCE OF THE RUSSIAN FEDERATION; SELF-SUFFICIENCY OF THE MAIN TYPES OF DOMESTIC AGRICULTURAL PRODUCTS, RAW MATERIALS AND FOOD; GUARANTEED PHYSICAL AND ECONOMIC ACCESS FOR EACH CITIZEN TO FOOD PRODUCTS THAT COMPLY WITH MANDATORY REQUIREMENTS AND RATIONAL STANDARDS.⁸⁰

The analysis of the state of the agro-industrial and fishery complexes⁸¹ as of May 1, 2022 showed that the shortage of tractors in Russia is about 70 thousand units, combine harvesters – 37 thousand units, share of imported equipment used in keeping farm animals and poultry – high, annual imports in dairy cattle breeding – about 35-50 thousand heads, import of semen of sires – about 4.8 million doses. In 2021, 211 types of vaccines for veterinary use are imported into the Russian Federation. The need for amino acids and vitamins, especially those that are not produced in the Russian Federation, is satisfied by the import of raw materials. The production of food eggs is performed using 9 crosses of poultry, of which 6 are of foreign selection (with different scope of initial, grandparental and parental forms). In 2021, the import volume of fish, fish products and seafood compared to 2020 increased by 91.7 thousand tons (by 15.3%).

The importance of achieving import independence as a necessary and possible solution to most of today’s economic issues has been repeatedly noted not only by the government, but also by representatives of civil society.

Both the state and society are unanimous in their opinion that the withdrawal of a number of foreign manufacturers of food products from the Russian market in terms of growing sanctions pressure from the “collective West” has vacated a niche for the activities of domestic agricultural manufacturers, including small-seized (individual entrepreneurs) and peasant (farms, etc.) manufacturers, which previously found it difficult to break into the market due to the dominance of foreign “giants.”

The basis for this consolidation may be the accumulated experience of dealing with sanctions. Thus, the ban on the import of grain from Russia introduced by Ukraine in 2016, led to the mobilization of the efforts of entrepreneurs and the state to find new markets. As a result, already in 2016, Russia became the world leader in sales of wheat for export purposes,⁸² while the record grain exports from Russia caused the bankruptcy of US companies in 2018.⁸³ Therefore, even today agriculture has every chance of becoming a driving force of the Russian economy.

In addition, representatives of the public⁸⁴ highly appreciate the natural and climatic potential of the new annexed territories for the development of various areas of agriculture. However, they note that today, due to prolonged hostilities, significant damage has been caused to all socially significant infrastructure, including the agro-industrial complex the indicated regions.

At present, volunteer work is being actively performed to establish interaction with representatives of state authorities in the field of agriculture in the new territories, as well as with representatives of agricultural manufacturers for their adaptation and legal education.⁸⁵

An emerging need to develop our own production capacities and base of genetic resources and produce veterinary drugs is a factor for the development of Russian industry and science for industry purposes with thoughtful and purposeful state support for the relevant activities.

Agricultural machinery at the stand of the Rostselmash company at the International Agricultural Exhibition “YUGAGRO 2022” in the Krasnodar Region. November 22, 2022. Vitaly Timkiv / RIA Novosti

The Government of the Russian Federation has adopted a whole list of measures aimed at stabilizing the domestic food market and supporting agricultural manufacturers.⁸⁶ In particular: a temporary ban on the export of rapeseeds (until February 2023), temporary introduction of an export duty on soybeans (until August 31, 2024), stabilization of prices for agricultural products through the use of reserve funds of the state fund, building of new breeding and genetic centers, preferential loans to farmers.

Harvesting wheat near the Talniki village, Uzhursky district, Krasnoyarsk Region. September 22, 2022. Ilya Naimushin / RIA Novosti

According to representatives of civil society and agricultural manufacturers, the measures taken by the state to support the agro-industrial complex may create all the necessary conditions for the development of the industry and the full provision of the country’s population with high-quality food (meat, milk, flour, etc.) of domestic production, as well as attract new farmers and investors and turn farming into a prestigious and profitable business.

The announced partial mobilization served as another challenge to maintain the stable functioning of the industry and ensure the relevant food security.

Representatives of the rural community and agricultural manufacturers, which fully supported the patriotic, political and social significance of the decision to perform partial mobilization and actively drew the attention of the state to the issues of farmers regarding this process.⁸⁷

In response to the request, amendments stipulating that all mobilized citizens, who are individual entrepreneurs, founders (participants) of organizations, as well as exercising the powers of the sole executive body, are not subject to any restrictions and prohibitions under the Federal Law “On Status of Servicemen” regarding the performance of entrepreneurial activities. Such citizens are entitled to make a decision on the performance of entrepreneurial activities via proxies and have the possibility of providing five working days for resolving organizational issues related to the further performance of entrepreneurial activities, were made to the current legislation.⁸⁸

This year, active cooperation between the state and civil institutions has already shown good results.

On September 12, 2022, at a meeting with the Deputy Prime Ministers, Mikhail Mishustin announced that, according to the President’s instruction, the Government had updated the strategy for the development of the agro-industrial and fishery complexes for the period up to 2030.

He also noted that the President set the task to consider the current challenges in this strategy and create conditions for the expansion of the industry in all major areas.

Today, Russia is in the top ten countries of the world in terms of value added in the agro-industrial sector and one of the largest suppliers of wheat and sunflower. Domestic farms fully satisfy the needs of the country in such important products as meat, fish, grain, sugar and vegetable oil.

According to the information available in the official Telegram channel of the Government of the Russian Federation, the record grain harvest was reached in Russia in 2022. The production of potatoes, greenhouse vegetables, fruits, soybeans and rapeseed also increased.⁸⁹

At the same time, the creation and expansion of the range of domestic goods and technologies is certainly a popular direction in terms of sanctions pressure and restrictions on imports to Russia. However, the efficiency of import independence is determined not by the quantity of substituted products, but by their quality and competitiveness. The main indicator of the evaluation is the demand for Russian-made goods not only in the external, but also in the domestic market.

It should be noted that Russian society is currently expressing its readiness for transition to domestic products. Thus, according to the PRO Brand communication agency, prior to the imposition of anti-Russian sanctions in February 2022, only 7% of Russians were interested in the country of origin when buying goods. In May 2022, the indicator increased to 40%. At the same time, in some cases (cosmetics,⁹⁰ washing powders⁹¹), voluntary refusal of citizens from any imported products was noted. According to the results of a joint survey conducted by the Vprok.ru online hypermarket, “Perekrestok” and the “ResearchMe” research center, 44% of Russians are ready for the full transition to domestic products.

Representatives of civil society are also actively working to educate and promote domestic products. Various groups in the VKontakte social network (for example, “Buy Russian!“,⁹² “RU MARKET”⁹³), which are aimed at promoting Russian goods, are created.

In this vein, industrial tourism, the purpose of which, among other things, is to promote Russian brands, gets special significance. The Agency for Strategic Initiatives (ASI) and the Ministry of Industry and Trade of the Russian Federation are implementing the Acceleration Program for the Development of Industrial Tourism as a mechanism for improving the image of Russian enterprises and building consumer loyalty to Russian brands.⁹⁴

According to the results of 2021, 250 enterprises as part of 30 regional teams were trained; 285 excursions to enterprises were organized as part of the accelerator; 150 routes were developed by regional teams; 30 regions prepared own industrial tourism development strategies and 53 regions applied for participation in the accelerator.⁹⁵

In addition, there is an active development of the agritourism industry. For Russian manufacturers, there is an additional opportunity to promote and sell their products, while it is another direction of domestic tourism for citizens, which helps to know more about the rural lifestyle, culture and customs, familiarizing with local handicrafts, cooking traditional dishes, agriculture and farming.

In 2022, a special measure of state support (“Agritourism” grant) helped in the implementation of 51 projects for the development of rural tourism. According to the Ministry of Agriculture of the Russian Federation, next year the amount of grant support will increase, while the number of funded projects will increase to 71.

The image of Russian food products is also improved by numerous events to promote the goods of Russian manufacturers, which traditionally attract a lot of attention and arouse interest among the citizens of our country. One of them is the “Tastes of Russia” national competitionorganized by the Ministry of Agriculture of the Russian Federation.⁹⁶

The project is aimed at introducing consumers to the diversity of Russian tastes and stimulating the development of regional food brands.

Thus, while considering the experience of resisting sanctions pressure from 2014, as well as the readiness and interest of citizens in providing support to domestic entrepreneurs (Russian business in occupying vacant niches, and state authorities in ensuring such activities), it can be assumed that the fundamental foundations for the transition to the new Russian economy are currently formed.