Areas for enhancing the competitiveness of russian industrial producers under sanctions and import substitution

The article examines key areas for enhancing the competitiveness of Russian industrial producers under sanctions-related restrictions and the policy of import substitution. Drawing on data from Rosstat, the Ministry of Economic Development of the Russian Federation, and business tendency surveys of industrial enterprises conducted by the Institute of Economic Forecasting of the Russian Academy of Sciences, the study demonstrates that the growth of industrial output in 2023–2024 should not be equated with an increase in the competitiveness of domestically produced goods. The article identifies a gap between the quantitative substitution of imports and the qualitative strengthening of firms’ competitive positions, since a substantial share of enterprises replaced unavailable imports by switching suppliers rather than by establishing domestic production. Five interrelated areas are proposed: deepening localization with a transition to the production of components and capital goods; developing research and development activities; improving government financial support measures; diversifying sources of supply; and entering the markets of friendly countries.