Current trends in import substitution of construction materials and equipment in the Russian Federation

Abstract

This paper investigates the current directions of import substitution in the Russian construction sector. Against the background of economic instability and international sanctions in recent years, the task of building up the potential of domestic production of construction materials and equipment has become increasingly important. The paper discusses the key areas of import substitution, including the development of high-tech construction materials production, strengthening support for Russian manufacturers, as well as the introduction of innovative technologies.

Currently, the issue of import substitution for companies in the construction sector is very important. Co-operation with domestic suppliers for a number of materials required for production is being actively developed. Russian manufacturers of raw materials, equipment and components understand perfectly well that now is a unique time for them, when many market segments and niches are being freed up and they can replace foreign suppliers who are leaving.

At the same time, one of the negative consequences of the sanctions has manifested itself in the fact that many enterprises have decided to temporarily reduce their investment programmes and abandoned plans to modernize or expand their production capacities. There are also difficulties in supplying equipment components from abroad. Previously, a significant part of equipment was purchased in the European Union countries, for example, in Italy. Currently, most of the alternative supplies are from China.

Special attention is paid to analyzing government policies aimed at stimulating local producers, as well as assessing the prospects for sustainable growth and self-sufficiency of the construction industry. In general, the current prospects of domestic producers are positively assessed.

The purpose of the paper is to highlight the current trends of import substitution of construction materials and equipment in the Russian Federation, find problems and propose solutions.