The sanctions have spurred the Russian industry according to the Minister of Industry and Commerce

The sanctions have spurred the Russian industry according to the Minister of Industry and Commerce

RNS – The sanctions imposed against Russia by the West and the counter-sanctions implemented by Moscow have geared up the agricultural, engineering and pharmaceutical industries in the country, as stated by the Russian minister of Industry and Commerce Denis Manturov at an interview with the French newspaper Les Echos. The share of oil and gas in Russian exports is currently below 50%, as noted by Manturov.

“The sanctions have helped the development of our industry. To be honest, we are very much interested in their extension” – said the minister. According to Manturov, thanks to the embargo imposed by Russia on the import of products from European countries, the Russian agricultural sector has grown by 4-5% annually and the production of agricultural machinery has increased by 20% since 2014. The producers of oil and gas equipment have become the biggest beneficiaries of the mutual sanctions: the imports in the segment have fallen to 50% from 70%. “Western sanctions had positive effects on many industries: engineering, chemical, pharmaceutical, aircraft-building” – said Manturov.

“We have done a lot for diversification during the 2008 and 2015 crises. The share of oil and other natural resources, which used to form more than half of our exports previously, is currently below 50%” – as highlighted by the minister.

Manturov sees the weak mobility of the work force as one of the obstacles hindering the process of diversification in Russia. “In connection with the economic growth in the Far East region, there’s a staff shortage of 7000 people in Vladivostok and its surrounding areas, which we’re trying hard to compensate with work force from the western regions of the country” – he stated.