How international sanctions affect business processes in companies and industrial enterprises

article is devoted to the analysis of the impact of international sanctions on Russian business and industry. Sanctions have significantly changed the conditions for doing business disrupting supply chains, access to financial resources and export opportunities. Restrictions on imports and exports, rising costs and logistical difficulties force companies to adapt their strategies, reorienting themselves to domestic and eastern markets. The main attention is paid to the measures taken to overcome the crisis: the development of import substitution, changes in business models and diversification of supplies. Examples of successful adaptation in such companies as AvtoVAZ, Severstal and KAMAZ include localization of production, the use of parallel imports and the transition to settlements in rubles with friendly countries. However, problems persist in high-tech industries such as microelectronics, where a lack of equipment and qualified specialists prevents full import substitution. Sanctions have also limited access to international financing, which has complicated the implementation of large projects and increased the debt burden on enterprises. This has led to an increase in domestic financing and a focus on government support. At the same time, Russian businesses are actively introducing automation and digitalization to reduce costs.

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Publication Details

Published
2025-05-14
DOI
https://doi.org/10.33920/pro-01-2506-05
Primary Topic
Economic and Technological Developments in Russia
Type
article
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How international sanctions affect business processes in companies and industrial enterprises

A.Y. Ravinsky
Economic and Technological Developments in Russia
article

How international sanctions affect business processes in companies and industrial enterprises

A.Y. Ravinsky
article en

Abstract

article is devoted to the analysis of the impact of international sanctions on Russian business and industry. Sanctions have significantly changed the conditions for doing business disrupting supply chains, access to financial resources and export opportunities. Restrictions on imports and exports, rising costs and logistical difficulties force companies to adapt their strategies, reorienting themselves to domestic and eastern markets. The main attention is paid to the measures taken to overcome the crisis: the development of import substitution, changes in business models and diversification of supplies. Examples of successful adaptation in such companies as AvtoVAZ, Severstal and KAMAZ include localization of production, the use of parallel imports and the transition to settlements in rubles with friendly countries. However, problems persist in high-tech industries such as microelectronics, where a lack of equipment and qualified specialists prevents full import substitution. Sanctions have also limited access to international financing, which has complicated the implementation of large projects and increased the debt burden on enterprises. This has led to an increase in domestic financing and a focus on government support. At the same time, Russian businesses are actively introducing automation and digitalization to reduce costs.

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Economic and Technological Developments in Russia
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