Russian response to economic sanctions: inspiring prosperity shift in agriculture

1. RUSSIAN RESPONSE TO ECONOMIC SANCTIONS: INSPIRING PROSPERITY SHIFT IN AGRICULTURE

Financial University under the Government of the Russian Federation
RUSSIAN RESPONSE TO ECONOMIC
SANCTIONS:
INSPIRING PROSPERITY SHIFT IN
AGRICULTURE
Kristina Mager
Ekaterina Sklyar
Elizaveta Slesareva
Third –year students
Faculty of Economics and Finance
Moscow 2015

2. CONTENTS

• Background
• Double-edged sanctions
• Gains in agricultural sector
• Conclusion
• References
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance

3. The background

Double-edged
sanctions
The background
Gains in import
substitution
Conclusion
political crisis
• Individuals
close to the
Russian
leaders
• Key decisionmakers
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance
References

4.

The background
Double-edged
sanctions
Gains in import
substitution
Conclusion
References
Counter-sanctions
Targeted sectors:
Date of initiation: August 6, 2014
Referred products: agricultural products, raw
material and foodstuffs
States involved: the US, the EU, Canada,
Norway, Australia, Albania, Montenegro, Iceland,
Liechtenstein
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance

5.

The background
Double-edged
sanctions
Gains in import
substitution
Conclusion
References
Inflation rate from July 2014 to July 2015 (compared to the same month of the
Russia: Inflation rate
from July 2014 to July 2015
previous year)
16,7%
16,9% 16,4%
16,7% 16,9%
18,0%
18,0%
15%
15%
16,0%
16,0%
16,4% 15,8%
15,6%
15,8% 15,3%
15,3% 15,6%
14,0%
14,0%
11,4%
11,4%
12,0%
12,0%
10,0%
10,0%
8,0%
8,0%
8%
7,6% 8%
7,5%
7,5% 7,6%
8,3%
8,3%
9,1%
9,1%
6,0%
6,0%
4,0%
4,0%
2,0%
2,0%
0,0%
0,0%
Jul'14
Jul'14 Aug'14
Aug'14 Sep'14
Sep'14 Oct'14
Oct'14 Nov'14
Nov'14 Dec'14
Dec'14 Jan'15
Jan'15 Feb'15
Feb'15 Mar'15
Mar'15 Apr'15
Apr'15 May'15
May'15 Jun'15
Jun'15 Jul'
Jul'1515
http://www.statista.com/- The Statistics Portal
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance

6.

The background
Double-edged
sanctions
Gains in import
substitution
Conclusion
LOSS OF:
Russia
Western
countries
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance
References

7.

Double-edged
sanctions
The background
Gains in import
substitution
Conclusion
References
The countries most vulnerable to counter-sanctions:
POLAND
THE USA
FINLAND
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance

8.

The background
Double-edged
sanctions
Gains in import
substitution
Conclusion
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance
References

9.

Double-edged
sanctions
The background
Gains in import
substitution
Modernization of
economy
Import
substitution
Creation of new
jobs
Conclusion
References
Industry
BOOSTER
FOR
RUSSIA’S ECONOMY
Research &
Development
Agriculture
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance

10.

The background
Double-edged
sanctions
Gains in import
substitution
Conclusion
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance
References

11.

Double-edged
sanctions
The background
Gains in import
substitution
Conclusion
References
The production of dairy products in Russia
60-70%
500
+12%
450
of substituted
foreign supplies
th, tons
400
+14%
350
2013
2014
300
250
+30%
200
150
100
cheese
butter
powdered milk
http://www.statista.com/- The Statistics Portal
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance

12.

Double-edged
sanctions
The background
Kolomna district –
meat of snails
Gains in import
substitution
Conclusion
Sverdlovsk
region - jamon Tyumen region –
Mozzarella and
Philadelphia
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance
References

13. Conclusion

The background
Double-edged
sanctions
Gains in import
substitution
Conclusion
• a long-term scenario of
import substitution
quantity of products
quality of products
• competitiveness of Russian
products
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance
References

14. ReFERENCES

The background
Double-edged
sanctions
Gains in import
substitution
Conclusion
References
1. European commission. Official website. [Electronic resource] URL:
http://ec.europa.eu/food/safety/international_affairs/eu_russia/ru
ssian_import_ban_eu_products/docs/20140806_en.pdf (Last
accessed on 08.12.2015).
2. BBC news agency. Official website. [Electronic resource] URL:
http://news.bbc.co.uk/ (Last accessed on 08.12.2015).
3. Russia Beyond The Headlines // CBS News. Official website.
[Electronic resource] URL:
http://www.cbsnews.com/news/vladimir-putin-on-positive-impactof-economic-sanctions-60-minutes/ (Last accessed on 08.12.2015).
K. Mager, E. Sklyar , E. Slesareva Faculty of Economics and Finance

15.

Thanks for your attention!